Why are financial markets important to the health of the economy? If you suspect that a company will go bank

Why are financial markets important to the health of the economy? If you suspect that a company will go bank

 

 

answer:

A financial market is a market where people and organizations can trade of financial instruments such as securities and commodities at a low transcript cost and at prices that optimizes the demand and supply

Financial markets important to economy because

Financial markets accumulate funds from the public who wants to invests for a return and divert these funds for the organization in need of funds

A good functioning of financial market will leads to better and high economic growth

Financial markets also facilitates the international flow of funds between countries

A well-developed financial system should improve the efficiency of financing decisions, favoring a better allocation of resources and thereby economic growth.

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