Financial Markets

What are Financial Markets?

A financial market is simply anywhere or anything through which assets are traded. Stocks are issued and traded on the stock market, bonds on the bond market, options and futures on the derivatives market etc.

A market can be split into two sections:

  • Primary - The market where goods are bought for the first time and new issues are sold
  • Secondary - The market where goods are traded after having been issued (i.e. the issuer seeing no benefit)
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