FINANCIAL MARKETS (UNIT-10)
UNIT-10 FINANCIAL MARKETS Financial Market is a market for creation and exchange of financial assets like shares, bonds etc. It helps in mobilising savings and channelizing them into the most productive uses. It helps to link the savers and the investors by mobilizing funds between them. The persons or institutions by which allocation of funds is done are called Financial Intermediaries. They bring together borrowers and lenders and make funds available to those willing to pay for their use, Functions of Financial Markets 1. Mobilisation of Savings and channeling them into the most productive uses : Financial market facilitates the transfer of savings from savers to investors and thus helps to channelize surplus funds into the most productive use. 2. Helps in Price Determination : Financial Market helps in interaction of savers and investors which in turn helps in the determination of prices of the financial assets such as shares, debentures etc. 3. Prov...