overview of financial markets

# **Overview of Financial Markets**

Financial markets are platforms where buyers and sellers trade assets like **stocks, bonds, currencies, and commodities**. They facilitate **capital flow, investment, and economic growth**.

## **1️⃣ Types of Financial Markets**
✅ **Stock Market:** Companies issue shares; investors trade equity (e.g., NSE, BSE).
✅ **Bond Market:** Governments & corporations issue debt securities for fundraising.
✅ **Forex Market:** Global exchange of currencies; highly liquid.
✅ **Commodities Market:** Trading in gold, oil, and agricultural products.
✅ **Derivatives Market:** Futures & options contracts based on underlying assets.

## **2️⃣ Importance of Financial Markets**
✅ **Capital Allocation:** Connects investors with businesses needing funds.
✅ **Liquidity:** Ensures assets can be bought or sold easily.
✅ **Price Discovery:** Determines fair asset values through supply & demand.

### **Conclusion**
Financial markets are the backbone of the economy, offering **investment opportunities, risk management, and capital formation**. 🚀