Question
Financial Markets act as a link between investor and borrower.

Answer

  • The financial market is the market that brings together borrowers and lenders.
  • The financial market attracts fund from investors by offering them a variety of schemes and then collected fund is diverted into the business organizations.
  • People having surplus cash invested into financial market securities, the financial market provides finance than to businesses.
  • Similarly, when the financial market generates income from investments in business, it shares with the investor.
  • Thus, it is a valuable link between borrower and lender.

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