overview of financial markets

# **Overview of Financial Markets**

Financial markets facilitate the trading of **stocks, bonds, currencies, and commodities**, ensuring capital flow and economic stability.

## **1️⃣ Major Financial Markets**
✅ **Stock Market:** Equity trading (e.g., NSE, BSE).
✅ **Bond Market:** Debt securities for fundraising.
✅ **Forex Market:** Global currency exchange.
✅ **Commodities Market:** Trading in gold, oil, and agricultural products.
✅ **Derivatives Market:** Futures & options contracts based on underlying assets.

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

### **Conclusion**
Financial markets are essential for **investment, capital formation, and economic growth**, offering various opportunities for traders and investors. 🚀