The Role of Financial Markets in the Global Economy

*The Role of Financial Markets in the Global Economy*

Financial markets are platforms where buyers and sellers trade assets like stocks, bonds, and currencies. They play a vital role in the global economy by facilitating capital flow, enabling companies to raise funds, and providing investors with opportunities to grow their wealth. Efficient financial markets contribute to economic growth by promoting liquidity, price discovery, and risk management. Understanding how these markets operate is essential for making informed investment decisions.