Financial Markets refer to the global financial system and its institutions. The word market implies an exchange of goods and services. In this context, the term financial markets refers to the buying and selling of securities as well as insurance products. The global financial system is a part of the economy that functions on the basis of buying and selling securities, creating money and transferring funds between countries. The global financial system is supported by financial markets, which are essential for economic growth.Financial markets are worldwide; they’re accessible anywhere there’s internet access. They also exist in physical locations such as banks and stock exchanges. International trade occurs via banks, which help transfer goods from one country to another via a financial market. Most countries have their own national financial markets; however, these can be connected to each other via international financial markets or banking systems. Financial markets are run by brokers who provide buying and selling services for investors, companies and governments. Brokers have direct access to the money supply via banks, which allows them to trade securities with utmost efficiency.Financial markets are essential components of economics that allow investors, companies and governments alike to make important decisions regarding wealth creation and investment strategies. Global finance is supported by an interconnected global economy that generates revenue for strong national economies— enabling strong national finances that support global finance.For example, an American business seeking investment will only find willing investors if there is an American economy capable of generating sufficient revenue for investment opportunities.. Therefore, an important part of maintaining a healthy economy worldwide is maintaining a healthy local economy at all levels worldwide as well as globally connected financially through infrastructure such as financial markets.
