Business, Legal & Accounting Glossary
Financial markets can be referred to as a set up where various types of financial instruments can be traded.
Major financial instruments that are traded include securities such as bonds and stocks. Financial markets are under a constant process of innovation and improved liquidity of this market has let it evolve significantly.
Financial markets operate with several other submarkets. Together with these submarkets, a financial market is a single operating organization that controls supply and demand of money in an economy. Major types of financial markets can be summarized as follows:
Financial markets have started to globalize operations since the mid-1980s. Capital flows between industrial countries have increased tremendously in recent years. Capital inflows were marked with high growth rates, but there are certain instances also where growth rate has collapsed beyond imagination. As a result, a debate arises as to what effect does globalization of financial market has on financial set up of any nation’s economy.
Financial markets have definitely aided in increasing the level of capital through capital markets. Without financial markets, it wouldn’t be possible to hunt investors and globalize financial market has provided access to lenders and borrowers on a global basis.
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This glossary post was last updated: 27th March, 2020 | 1 Views.