overview of financial markets

# **Overview of Financial Markets**

Financial markets facilitate the **buying, selling, and exchange of financial assets**, driving economic growth and investment opportunities.

## **1️⃣ Types of Financial Markets**
✅ **Stock Market:** Trading of company shares (e.g., NSE, BSE).
✅ **Bond Market:** Governments & corporations issue debt securities.
✅ **Forex Market:** Global currency trading with high liquidity.
✅ **Commodities Market:** Gold, oil, and agricultural products.
✅ **Derivatives Market:** Futures & options for hedging and speculation.

## **2️⃣ Key Functions**
✅ **Capital Formation:** Helps businesses raise funds.
✅ **Liquidity:** Ensures smooth asset transactions.
✅ **Risk Management:** Hedging through derivatives.

### **Conclusion**
Financial markets play a **crucial role in wealth creation, economic stability, and investment diversification**, making them essential for traders and investors. 🚀