Finance - Financial Market

Being in finance field, it is necessary for us to know the function, structure and operation of financial market, in this post, I will write on the function of financial market.

Aside from the purpose to accumulate wealth, in broader view, finance world actually is a place where firms or similar entities acquire money for their continuing operation and development. Think about this, A like to start a business, but he need a sum of capital to do that; while B, C and D have lots of money, but they do not know how to use their money to accumulate more wealth as they are not good in business stuff.

In your opinion, is it a better way if B, C, and D money being gathered and used by A to start his/her business and thus add value to the money? I do believe most of us will not deny it. So, financial market existed just to meet both parties: A (borrower) and B, C, and D (lenders), and let the cash can be used efficiently instead of keep it under yours and mine beds ~ :D.

Financial market is something important in an economic to help develop a country, and make the country have better living standard (reduce unemployment rate, increase gross domestic product (GDP), increase government income and else), but everything can be both end sword if think in deep; you may refer to one of my post:

http://yappypath.blogspot.com/2009/11/think-deep-in-finance-part-2-asian-rare.html

http://yappypath.blogspot.com/2009/11/think-deep-in-finance.html 

Next post I will touch on financial market structure, thanks.