Financial Market: UPSC Daily Important Topic | 11 January 2022

January 11, 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.