What does it mean

Financial Markets   Financial markets refer to platforms or systems where various financial instruments are bought and sold. These markets facilitate the trading of assets such as stocks, bonds, commodities, currencies, and derivatives. They provide a platform for individuals, institutions, and governments to buy, sell, and trade financial assets. The financial markets serve several purposes: Price Discovery: Financial markets provide a mechanism for determining the prices of financial instruments. Through the interaction of buyers and sellers, the forces of supply and demand determine the market prices of assets. Liquidity: Financial markets enhance liquidity by providing a platform where investors can easily buy or sell their assets. The presence of willing buyers and sellers in the market allows for efficient execution of trades, ensuring that investors can convert their investments into cash when desired. Capital Formation: Financial markets play a crucial role in facilitat...