What is the financial market?

We hear a lot about the financial market but not everyone knows what are we talking about. Let’s
start from the beginning. The financial market is the space where
there are made financial transactions such as the purchase or sale of various forms of capital. There are two main groups on the market
financial – investors (with surpluses
capital) and – as you can say – “visionaries” who need these resources
financial means to implement your business ideas. This is the main feature of the economy
free market and capitalism. The economy benefits a lot from the development of the financial market,
thanks to the fact that money is constantly traded and new companies are formed and thus
new jobs, more money goes to the Treasury etc. It is worth remembering that the market
financial is closely related to institutions operating in a given country. Every
state has its counterpart of the National Bank and its own separate economic laws
governing the money and capital segment.
Financial markets have different sizes and the technologies they use. But no worries

  • often the world financiers come to an agreement and for example the action of a given company is
    worth the same on any market other than the home market. It’s good to know that
    nowadays the financial market may operate traditionally in physical space but it can also
    exist only on the Internet.


Read Previous

Money functions

Read Next

What are the functions of the financial market?

Leave a Reply

Your email address will not be published. Required fields are marked *