What are the 5 roles of financial markets?

The 5 roles of financial markets are ensuring a low cost of transactions and information, ensuring liquidity by providing a mechanism for an investor to sell the financial assets, providing security to dealings in financial assets, and providing facilities for interaction between the investors and the borrowers. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

It also provides pricing information resulting from the interaction between buyers and sellers in the market when they trade the financial assets.

Further readings:

  1. Capital Markets – Types, Examples, Features, Structure, Functions, and Advantages
  2. Demand and Supply – Concepts of Economy for UPSC

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