In economics, a financial market is a mechanism that allows operators to exchange financial assets. In general, any commodity market could be considered as a financial market if the buyer is not the purpose of immediate consumption of the product but the delay in consumption over time.
Financial markets are affected by the forces of supply and demand. Markets to all vendors placed in the same place, making it easier for potential buyers. The economy relies primarily on the interaction between buyers and sellers to allocate resources is called a market economy, in contrast to the planned economy.
Financial markets in the financial system, provide:
- The increase in capital (capital markets).
- The transfer of risk (in the derivatives markets).
- International trade (in the currency markets).
They are used to bring together those who need financial resources to those who have them.
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