In econamics,a financial market is a mechanism that allows peopleto buy and shell financial securities,commodites,and other fungible items of valueat low transaction cost and at price that reflect the efficient market hypotesis.
Both general market and specialist markets,exist. markets work by placingmany interested buyersand sellers in one place,thus making at easier for them to find each other. An economy which rilies primaraly on interacsion between buyers and sellers to allocateresourches isknown as a market economy in contrast either to command economy or to non market economy such as a gift economy.
In finance,financial markets facilitate :
- The raising of capital
- The transfer of risk
- International trade
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