Financial market can simply be referred to as any marketplace where sellers and buyers engage in trade assets like currencies, equities, bonds and derivatives. Financial markets observe transparent pricing and fundamental controls on costs, trading, fees and market forces that identify trade securities’ prices. Financial market can be seen in almost every country in the world. Some are tiny with a few players and some are mammoth and have a large population participating like the forex markets and the New York Stock Exchange.
These markets trade with trillions of dollars on a daily basis. Some financial markets permit only certain participants that meet a specific parameter. Factors contributing to such choices include amount of money, geographical location of the investor, investor’s profession and market knowledge. Financial markets are subjects to extremes in terms of highs and lows and are dependent on several factors like demand, tax rates, employment levels and national productivity.