Financial Markets
Financial markets are organized marketplaces where financial instruments such as stocks, bonds, currencies, and derivatives are bought and sold, serving as the primary mechanism for capital allocation in an economy. They facilitate the flow of funds from entities with surplus capital (investors) to those in need of capital (corporations and governments), thereby enabling investment, economic growth, and the management of financial risk. By bringing together a vast number of participants, these markets are crucial for price discovery, providing liquidity for assets, and serving as the operational arena where financial institutions execute investment strategies on behalf of their clients and for their own accounts.