Financial Market: UPSC Daily Important Topic | 11 January 2022
Financial Market
• Financial market is the market that facilitates transfer of funds between investors/ lenders and borrowers/ users.
• Financial market may be defined as ‘a transmission mechanism between investors (or lenders) and the borrowers (or users) through which transfer of funds is facilitated’.
• It consists of individual investors, financial institutions and other intermediaries who are linked by a formal trading rules and communication network for trading the various financial assets and credit instruments.
• It deals in financial instruments (like bills of exchange, shares, debentures, bonds, etc.
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