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What is the main function of financial markets? Who is usually better off in case of...

What is the main function of financial markets? Who is usually better off in case of well-functioning markets? Explain your answer. This is from financial markets and institutions 9th edition global end of chapter 2 Questions

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Financial Market is defined as the commercial marketplace where the production and exchanging of financial assets, for example, shares, bonds, derivatives, debentures and others. It assumes an essential part in assigning limited resources, in the nation's economy. It goes about as a go between the investors and entrepreneurs by assembling capital between them.

The fundamental capacity of financial markets is to exchange the funds from the lender-savers to the borrower-spenders. Individuals from family units, business firms, governments, just as outsiders and their respective governments at times discovery with excess funds. This empowers them to loan money to the individuals who have a deficiency of funds and acquire an interest on it. Financial markets make it feasible for investors and banks to meet and cooperate, and when they function proficiently, they advance the economic welfare of everyone in society.

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