Describe any four functions of Financial Market.
Functions of Financial Market:
- It mobilises savings and channelises them into most productive use by facilitating transfer of savings from savers to investors.
- It facilitates price discovery for financial assets by interaction of forces of demand and supply.
- It provides liquidity to financial assets as the securities can be easily converted into cash.
- 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.