What is the financial market and its function?

Financial Market refers to the system consisting of financial institutions, financial instruments, regulatory bodies, and organisations. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

Financial market facilitates traders to buy and sell financial instruments and securities. The functions of the Financial market includes reduction in transaction costs, risk sharing, liquidity, easy access, capital formation, funds mobilization, and price determination.

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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