ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One of the main factors affecting the share market is the imbalance between supply and demand which leads to the increase or decrease in the price of stocks. In addition, factors such as economic data and interest rates affect the demand for stocks leading to fluctuations in the value of stocks.

Detailed explanation-2: -A financial market is a place where firms and individuals enter into contracts to sell or buy a specific product such as a stock, bond, or futures contract. Buyers seek to buy at the lowest available price and sellers seek to sell at the highest available price.

Detailed explanation-3: -The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell equities (stocks), debt securities.

Detailed explanation-4: -The 5 roles of financial markets are ensuring a low cost of transactions and information, ensuring liquidity by providing a mechanism for an investor to sell the financial assets, providing security to dealings in financial assets, and providing facilities for interaction between the investors and the borrowers.