What Are The Functions Of Financial Markets?

In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities(such as precious metals or agricultural goods), and other fungible items of value at low traction cost and at prices that reflect the efficient-market hypothesis.

financial markets facilitate –

• The raising of capital (in the capital markets);
  
  
• The transfer of risk (in the derivatives market);
  
  
• International trade (in the currency markets)