• Financial markets in a broad sense refer to any market in which securities are traded.
  • There are many types of financial markets, including (but not limited to) the foreign exchange market, the market for money, stocks and bonds.
  • These markets may include assets or securities that are either listed on regulated exchanges or traded over the counter (OTC).
  • Financial markets trade in all kinds of securities and are critical to the smooth running of a capitalist society.
  • When financial markets fail, it can lead to economic shocks, including recession and unemployment.