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.