What is the role of the financial market?

There are several roles played by the financial markets. Financial markets help the government in raising funds by letting them borrow at a lower rate of interest. Financial markets help in the growth of the economy. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

It provides a mechanism for an investor to sell the financial assets, and provides security to dealings in 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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