What are financial markets?
What are financial markets?
Financial Markets is the place or system where buyers and sellers come together to trade financial instruments, including bonds, stocks, various international currencies and derivatives products. Financial markets bring together those who need capital and those who have capital. Financial markets allow participants to transfer risk (usually through derivatives) and encourage trade.
Types of Financial Markets
1.Stok Market;
The stock market can be defined as the place where the property shares of public companies are bought and sold.
2.Bond market ;
The bond market, investors buy bonds from a company, and the company returns the bond amount, plus interest, after an agreed period of time.
3. Commodity market
The commodities market is where traders and investors buy and sell natural resources or commodities such as corn, oil, meat and gold. 4. Derivatives market Such a market involves derivatives or contracts whose value is based on the market value of the asset being traded.