There are various reasons why financial market is important to economic

success. First of which is that the financial market help the people to buy their needs. It
also helps the businessman to have a capital in their business. It also helps the investor
who has money to have even more money.

Financial market helps people to borrow money to buy their needs. Not all people
could afford everything they need and they want, thus these financial institutions help
them so that they can have a “temporary” money in which case they should pay
whenever time comes based on their agreement or contract. As for the businessman, it
helps them to have a leverage. They borrow money in order to make even more money
as they use the money the borrowed to create or invest in a business to gain income
and thus they make making more money that’s why I call them “wiseman” but being a
businessman isn’t as easy as borrowing money then put to business it is more
complicated than that as it poses risk to lose the money you borrowed as there are no
assurance in the business world.

These financial institutions works by accepting money from investors and

promising them interest and use their money to lend to other people to with even
greater interest thus these financial institutions and market provides a win-win situation
to both the people who engage in it and for themselves.

In conclusion, business institutions is very important as it helps everyone in their

need and to meet their goals in life thus, I encourage everyone to engage in it even as a
student to put our savings and to make money out of it.