Financial Markets: Types and Role in Economy

INTERNATIONAL TRADE, FINANCE AND
INVESTMENT

2. Executive Summary

3. Background of Financial Markets
Financial markets, from the name itself, are the kind of trading center that gives way to approval
and acquisition of resources, for example, bonds, stocks, non-households and sub-exchanges.
They are usually named by different names, including "Money Street" and "Capital Market", but
each of them actually means more or less the same thing. Basically, organizations and
speculators can go to the cash fund departments to raise money to grow their business and get
more cash flow, individually.
The financial system plays the key role in the economy by stimulating financial development,
influencing the financial performance of entertainers, influencing government funding support.
This is achieved on a monetary basis, where conserved materials are distributed to individuals
who have more profitable means of disposing of such goods. A currency framework makes
efficient exchange of funds possible. Because one exchange collection can hold data above the
other, it can cause the problem of data transfer and waste disposal of cash assets. Overcoming the
issue of data anomalies, the monetary framework promotes a balance between those with funds
to contribute and those who need repositories.
As indicated by the practical approach, the monetary business sectors encourage the
advancement of funds to finance profitability by businesses, governments and individuals.
Monetary groups are a key member of the money industry sectors as they perform an
intermediary capacity and thus determine the performance of the funds. Money regulators play
the role of controlling and supervising members in the money framework.
Types of financial markets
There are so many economic sectors of money, and at least every country has a home, despite the
fact that they are changing in size. Some are small although others are universally mentioned, for
example the New York Stock Exchange (NYSE) which regularly trades trillions of dollars. Here
are some types of categories of economic activities.
1. Stock market