overview of financial markets

# **Overview of Financial Markets**

Financial markets are platforms where assets like **stocks, bonds, currencies, and commodities** are traded, ensuring liquidity and economic growth.

## **1️⃣ Types of Financial Markets**
✅ **Stock Market:** Buying & selling shares (e.g., NSE, BSE).
✅ **Bond Market:** Governments & corporations raise funds via debt securities.
✅ **Forex Market:** Global currency trading with high liquidity.
✅ **Commodities Market:** Trading in gold, oil, and agricultural products.
✅ **Derivatives Market:** Futures & options contracts based on underlying assets.

## **2️⃣ Key Functions**
✅ **Liquidity:** Ensures smooth asset transactions.
✅ **Price Discovery:** Reflects demand-supply dynamics.
✅ **Risk Management:** Hedging through derivatives.

### **Conclusion**
Financial markets provide **investment opportunities, capital growth, and risk management**, making them vital to the economy. 🚀