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ST.

XAVIER`S COLLEGE OF MANAGEMENT


TECHNOLOGY
Digha-ashiyana Road, Digha ghat, Patna-800011,Bihar

TOPIC

ROLE AND IMPORTANCE OF FINANCIAL MARKET

Name : Mihir
Srivastava
Dept & Year : BBE 3
Roll no : 02
Table of Contents
• Introduction to financial markets
• Types of financial markets
• Role of financial market
• Functions of financial markets
• Importance of financial markets
• Conclusion
• References
Introduction to Financial Markets
Financial Markets includes any place or system that
provides buyers and sellers the means to trade financial
instruments, including bonds, equities, the various
international currencies and derivatives. Financial markets
facilitate the interaction between those who need capital
with those who have capital to invest.
Types Of Financial Markets

Money Market

Capital Market
Role of Financial Market

To facilitate savings by business and households.


 To lend to business and individuals.
 To allocate funds to productive uses.
 To provide forward markets in currencies and
commodities
To provide a market for equities
Functions of Financial Market

Mobilization of savings and channeling them into most


productive use.

Facilitating price discovery.

Providing Liquidity to Financial Assets

 Reducing the cost of Transactions


Importance of Financial Market

Ensure Balanced growth in the economy.

Increases growth of financial infrastructures

Offers economic discipline

Enhance trade development


Conclusions

Whether the country is developed or under developing,


financial markets play a crucial role in the development
and growth of the economy. These markets can meet the
market standards on local and international levels as per
investors’ requirements. So, if financial markets continue
to grow, in that case, it will positively impact the
economy and ultimately give it rise.
References

 http://businessnewsthisweek.com/business/importance-of-financial-
markets-in-the-global-economy/
 https://www.kundankishore.in/blog/what-is-the-importance-of-
financial-markets-in-an-economy
 Notes.
THANK YOU

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