Describe any four functions of Financial Market.

Functions of Financial Market:

  1. It mobilises savings and channelises them into most productive use by facilitating transfer of savings from savers to investors.
  2. It facilitates price discovery for financial assets by interaction of forces of demand and supply.
  3. It provides liquidity to financial assets as the securities can be easily converted into cash.
  4. It helps to save time, effort and money that both buyers and sellers of a financial asset would have to otherwise spend to try and find each other.

Related posts:

  1. State any four functions of ‘Secondary Market’.
  2. Explain briefly any four factors that affect the choice of capital structure of a company.
  3. Explain any three assumptions of Maslow’s Need Hierarchy Theory.
  4. What is meant by Financing Decision? State any four factors affecting the financing decision.

Leave a Comment

Your email address will not be published. Required fields are marked *