Financial markets are an economic system where its participants trade in specific goods - financial instruments. The system includes such participants as banks 
(that can play the role of market-makers), exchanges, broker companies, financial instruments (for example, funds) and individual traders.
The goods that are sold by the participants, are called financial
instruments or assets. In the most general sense, financial instruments
are certain obligations (contracts) that prove facts of mutual demands
of two parties. The first party is obligated to supply (immediately or
in future, unconditionally or on certain conditions) goods, and the
second - to pay (for example, with money or securities).
(that can play the role of market-makers), exchanges, broker companies, financial instruments (for example, funds) and individual traders.
The goods that are sold by the participants, are called financial
instruments or assets. In the most general sense, financial instruments
are certain obligations (contracts) that prove facts of mutual demands
of two parties. The first party is obligated to supply (immediately or
in future, unconditionally or on certain conditions) goods, and the
second - to pay (for example, with money or securities).
An important feature of the financial markets
is that the money or securities themselves might be regarded as goods.
But of course common (usual) goods and raw materials are also sold at
the financial markets. On the basis of it the financial markets may be
divided into foreign exchange markets, stock markets and raw materials
markets.
An important feature of the financial markets is
that the money or securities themselves might be regarded as goods. But
of course common (usual) goods and raw materials are also sold at the
financial markets. On the basis of it the financial markets may be
divided into foreign exchange markets, stock markets and raw materials markets.
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