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The function of the financial market is to facilitate the transfer of funds from surplus sectors(lenders) to deficit sectors (borrowers).In other words its a mechanism that allows people to easily buy and sell financial securities in financial market (Financial market does, not refer to a physical location). In general, households have more funds or savings, which they lend to corporate and public sectors whose requirement of funds far exceeds their savings. A financial market consists of investors or buyers of securities, borrowers or sellers of securities, intermediaries and regulatory bodies.
In simple terms “organizations that facilitates the trade in financial products” is known as financial market. Financial market is classified in to following categories:

Financial Market:

- Capital market
- Foreign exchange market
- Commodity market
- Derivative market
- Money market