Financial Market

A financial market is a marketplace where buyers and sellers trade financial instruments, such as stocks, bonds, currencies, and commodities. Financial markets facilitate the flow of capital, allowing investors to buy and sell assets efficiently. They play a crucial role in the economy by enabling price discovery, providing liquidity, and allowing companies to raise capital. Financial markets can be categorized into various types, including stock markets, bond markets, forex markets, and derivatives markets.

Example

The New York Stock Exchange (NYSE) is a financial market where investors buy and sell shares of publicly traded companies, enabling these companies to raise funds for growth.