Financial Market

market in which funds are transferred from people who have an excess of available funds to people who have shortage.Financial markets such as the bond and stock markets are important in channeling funds from people who do not have a productive use for them to those who do, a process that results in greater economic efficiency.Activities in financial markets also have direct effects on personal wealth,the behavior of businesses and consumers,and the overall performance of the economy.

(From The Economics of Money,Banking,and Financial Markets,fifth edition,Frederic S Mishkin)

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