Financial Market Overview

Financial Market Overview can be defined as the overall picture of a financial market. A financial market is basically a market for financial products which puts all its sellers in one place so that it can facilitate its trade and the subsequent raising of capital.

Financial markets can consist of the capital markets or the Stock Exchange trading in stocks, bonds and warrants, the Money markets, the Derivatives markets providing instruments for the management of financial risk as well as the Futures and Insurance markets.

The financial market overview can provide certain key information about the financial markets in general such as the stock market quotes, business news and financial news such as mergers and acquisitions affecting the financial market scenario. The financial markets are interrelated and changes in one sector of the economy are rapidly transmitted to other parts through the financial markets. A financial market plays a key role in any economy and is heavily dependent on factors such as inflation and exchange rates.

Whether these likely sources of instability will prevail in the economy is the starting point for many macroeconomists analyzing the financial markets.

The role of speculators in the financial markets can also play havoc in the performance of stock market indices for any economy in the world. From a microeconomic point of view however, the primary purpose of financial markets is to allocate available savings of the economy to its most productive use.