Question

Give the meaning of 'Financial Market'.

Answer 1

Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country’s economy. It acts as an intermediary between the savers and investors by mobilising funds between them.The financial market provides a platform to the buyers and sellers, to meet, for trading assets at a price determined by the demand and supply forces.