Finance Basics

Finance Basics

The financial market is a platform where individuals and institutions trade various financial instruments, including stocks, bonds, currencies, and derivatives. It plays a crucial role in the economy by facilitating capital allocation, enabling investment, and providing liquidity. Participants range from individual investors to large institutional entities, each contributing to price discovery and market efficiency. Financial markets can be categorized into primary markets, where new securities are issued, and secondary markets, where existing securities are traded. Understanding market trends, economic indicators, and investor behavior is essential for navigating this complex landscape and making informed financial decisions.