Explaining The Fundamentals of Financial Markets: A Theoretical Review

This paper attempts to explain the basic compositions of financial markets. Using a theoretical research approach, the paper highlights the definition, characteristics, types, functions, and role of financial markets in the economy of a given nation. Further, the importance of financial markets has also been underscored in this paper. Therefore, the aim of this paper is to highlight the nature, characteristics and importance of typical financial markets using a theoretical approach. Keywords: financial markets, money markets, capital markets, stock markets, bond markets, derivative markets; forex market; capital formation DOI: 10.7176/RJFA/13-20-08 Publication date:October 31st 2022