NCERT Solutions for Class 12 Business Studies Chapter 10 Financial Markets

Financial markets, from the name itself, are a type of marketplace that provides an avenue for the sale and purchase of assets such as bonds. Put, businesses and investors can go to financial markets to raise money to grow their business and to make more money, respectively. An excellent example of a financial market is a stock exchange. A company can raise money by selling shares to investors, and its existing shares can be bought or sold. A financial market is a place where firms and individuals enter into contracts to sell or buy a specific product such as a stock, bond, or futures contract. Buyers seek to buy at the lowest available price, and sellers seek to sell at the highest available price.