Question

Research and discuss the importance of the financial markets in providing capital, where and when needed for governmental, commercial and personal endeavors.

Answer 1

A financial market is a very important place for capital creation and fund mobilization, which refers to a marketplace to facilitate the trading of financial securities like ordinary equities shares, debentures, derivatives instruments, G-sec papers, bonds, currencies and many more. These financial markets are connector between savers, investors and user of funds. The size of financial market depend on daily transaction and mobilization of fund , some are small and some are very big like New York Stock exchange(NYSE).

The financial market help organized bodies and investors in many ways

• provide liquidity , by selling and buying activities
• decided the price of instruments , by demand and supply management
• help in creation of fund or capital , by allowing to issue new instruments
• regulate the activities , by regular check on fund raising institution
• communication platform , by providing regular publications and rpeorts

As per recent data from Nasdaq , the daily transaction are more than 80 billions

	Share Volume	Dollar Volume
Total Volume:	1,698,307,848	$88,005,035,064

Such huge transaction of fund supports the organized institution to create fund for there use.