What are the functions of the financial market?

The concept of a financial market for laymen can be a little difficult. Therefore, we will try to explain in a nutshell
what it consists of and what functions it performs.
The financial market is the “place” where various buying and selling transactions are concluded
forms of money capital, on different dates and on the basis of different financial instruments.
It is made up of people who want to invest their capital and people with
business ideas who know how to use these funds but must first obtain them.
The money market instruments include: treasury bills, money market bills, securities
debt, certificates of deposit, interbank deposits, loans and deposits and others
securities. On the other hand the segments of the financial market are for example: the market
money market, capital market, foreign exchange market, futures market and deposit and
credit. Each of these segments plays a different role in meeting the needs of the participants
financial market. What are the functions of the financial market? The basic ones are certainly:
capital mobilization (i.e. putting capital into investments) and money turnover. Thanks to
the financial market is also experiencing capital growth, which sectors benefit from
economies and entities that ensure its most efficient use. Moreover
the development of the economy causes the creation of new companies, enrichment of the state and investors
and founders of start-up companies, creating new jobs, and constant turnover
money – which is the basis of capitalism.


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