What is a financial market?

The market in which people trade financial securities and derivatives at low transactional costs. They include stocks, bonds, forex market, raw materials, precious metals, cryptocurrencies.

Financial markets trade in every type of securities and are critical to the smooth operation of a capitalistic system.

Recession and unemployment are the results of a failure in the financial market.

Financial markets ease the interactions between the one who needs capital with one who has capital to invest. They allow participants to transfer risk and thus promote commerce.

Financial markets provide a place where investors and debtors will receive fair and proper treatment.

Based on economy, through stock exchanges millions of dollars are daily traded in the capital market.