Financial Markets

Financial markets are platforms or systems that facilitate the exchange of financial assets, such as stocks, bonds, currencies, and derivatives, allowing buyers and sellers to transact. These markets play a critical role in the economy by enabling the allocation of resources, providing liquidity, and allowing for price discovery. Financial markets can be broadly categorized into primary markets, where new securities are issued, and secondary markets, where existing securities are traded among investors. They encompass various segments, including equity markets (for stocks), debt markets (for bonds), foreign exchange markets (for currencies), and commodity markets (for raw materials). Regulation and oversight are typically maintained by governmental and regulatory bodies to ensure fair trading practices and protect investors. The dynamics of financial markets are influenced by a multitude of factors, including economic indicators, market sentiment, and geopolitical events, impacting their performance and the broader economy.