ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financial markets play a vital role in facilitating the smooth operation of capitalist economies by allocating resources and creating liquidity for businesses and entrepreneurs. The markets make it easy for buyers and sellers to trade their financial holdings.

Detailed explanation-2: -Financial markets act as a link between sellers and buyers as it helps in the transfer of assets at the most appropriate investment opportunities. It assists in determining the capital worth of securities by allowing market forces to function on their own and determine the pricing of a tradable asset.

Detailed explanation-3: -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.

Detailed explanation-4: -Stock market. The stock market trades shares of ownership of public companies. Bond market. The bond market offers opportunities for companies and the government to secure money to finance a project or investment. Commodities market. Derivatives market. 20-Feb-2023

Detailed explanation-5: -Financial markets help inactive mobilization of the savings of various consumers and investors effectively. Financial markets have created a workplace for many traders and brokers. Through financial markets, financial assets have attained liquidity. More items