Financial markets are platforms where buyers and sellers trade financial instruments like stocks, bonds, derivatives, and currencies. These markets are essential for channeling funds from savers to borrowers and play a vital role in economic development. There are two primary types: capital markets and money markets. Capital markets deal with long-term securities such as stocks and bonds, while money markets involve short-term debt instruments like Treasury bills. Stock exchanges are organized marketplaces, such as those where company shares are bought and sold. Over-the-counter (OTC) markets allow decentralized trading without a physical exchange. Financial markets also include forex markets, where currencies are exchanged globally. Prices in these markets are determined by supply and demand, and the efficiency of these markets ensures transparent price discovery. Institutions like banks, brokers, and mutual funds facilitate operations. Regulation helps maintain stability and protect investors. A well-functioning financial market contributes to economic growth by enabling investment, savings, and risk management.