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Financial Markets




A financial market is a market in which individuals, private companies and public institutions can trade in financial securities, commodities and other assets at prices that reflect supply and demand. Securities include stocks and bonds, as well as commodities, including precious metals or agricultural commodities.

There are also markets in general (many of which are traded) and specialized markets (in which the only one is traded). The market works by placing a large number of interested buyers and sellers, including households, businesses, and government agencies, in a "place", thus facilitating their mutual search. An economy that relies heavily on the interaction of buyers and sellers in allocating resources is called a market economy as opposed to a directed economy or a non-market economy.

One of the aims of the financial markets is to facilitate:

Collection and investment of capital (on the capital markets)
Risk transfer (in derivatives markets)
The establishment of values ​​and rates (quotations)
The global business with the integration of financial markets
The transfer of liquidity (on the money markets)
International trade (in the money markets)

The equity market, ie corporate property titles; Daily market volumes of equity markets, equity indexes and their derivatives are less than $ 500 billion. Although these have a slightly higher natural volatility than other financial markets, their size is smaller. They are very exposed to financial disruptions, as during the financial crisis from 2007 to 2011. These are the only financial markets that are open to individuals. They occupy an important place in the information provided by the media about the financial markets, disproportionate importance in relation to their real economic importance

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