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Financial Market

"Financial market" is a generic term for all markets in which money and capital are traded, i.e. where financial instruments are bought and sold.

Financial markets, then, bring together investors (as capital providers) and companies (as capital seekers). Mediation between these two groups is performed by financial intermediaries such as banks, investment companies and insurance companies and, in a wider sense, stock-exchange platforms, money brokers and rating agencies, which make trading between the parties possible.

The financial market is divided into monetary markets, where the supply of and demand for short- and long-term money capital meet, and derivative markets, which are determined by the supply of and demand for financial derivatives.