Meaning: -A financial
Market is an institution that facilitates exchange of financial instruments
including deposits, loans, corporate stocks, government bonds, etc. financial Market
consists of both capital and money market.
Definition: - According to
Brigham Eugene F " The place where people and organization wanting to
borrow money, are brought together, with those having funds is called a
financial market":
Role
of Financial Market:
A financial market
is of great use for a country as it helps its economy in the following ways.
1. Saving Mobilization: - Obtaining funds from
surplus such as households, individuals, public sector units, central
government, etc and channelizing these funds for productive purposes.
2. Investments: -The financial
market plays an important role in arranging to invest funds thus collected in
those units which are in need of funds.
3. National growth: -The financial market
contributes to the national growth by ensuring continuous flow of surplus funds
to deficit units.
4. Entrepreneurship growth: -Financial
market contributes to the development of the entrepreneurial class by making
available the necessary financial resources.
5. Industrial development: -The components of financial markets help
towards accelerated growth of industrial and economic development of a country,
thus contributing to raising the standard of living and the society's well
being.
