What do financial markets do? Why are financial markets important to a society? How do financial...

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Finance

What do financial markets do? Why are financial marketsimportant to a society? How do financial markets accomplish whatthey do? What are asymmetric information problems and why wouldthis problem in financial markets matter to society?

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What do financial markets do A financial market is a market in which people trade financial securities and derivatives at low transaction costs Securities include stocks and bonds and precious metals The term market means exchanges organizations that facilitate the trade in financial securities eg a stock exchange or commodity exchange This may be a physical location such as the NYSE LSE JSE BSE or an electronic system such as NASDAQ Why are financial markets important to society Financial Market Index like SP500 for USA NIFTY SENSEX for India tell us on a whole where Society is moving and Our Quality of life Barometer for Society Nifty and Sensex are not only the barometer for the stock market but also the Barometer of our whole Indian Economy It is a Barometer for our consumption Say none of you have invested in stocks but all of you have reliance Jio connection You pay a monthly rental to Reliance Jio which increases its revenue which increases its profits If revenue and profit of Reliance jio goes higher then share price of See Answer

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