What is the Financial Market?

Question

Accepted Answer

Financial market is a platform where buyers and sellers trade financial securities, commodities, and other fungible items.

Financial markets facilitate the exchange of assets such as stocks, bonds, currencies, and derivatives.
They provide a platform for companies to raise capital through issuing stocks or bonds.
Financial markets can be categorized into primary markets (new securities are issued) and secondary markets (existing securities are traded).
Examples include stock exchanges like NYSE and NASDAQ, commodity markets like CBOT and LME, and forex markets like FOREX.
Financial markets play a crucial role in allocating resources efficiently and determining prices based on supply and demand.

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