Glossary entry
A financial market connects participants seeking capital, investment opportunities, liquidity, or risk transfer. It includes markets for shares, debt, currencies, and derivatives, operating through exchanges or dealer networks. Primary markets help issue new claims; secondary markets support trading existing ones. Prices and financing conditions emerge from participants' information, expectations, constraints, and willingness to transact.
Illustrative example
A government issues bonds to raise funds, and investors later trade those bonds with each other. These are related primary and secondary market activities.
What to consider
Different markets have different access, disclosure, settlement, and protection rules. Do not assume experience in one market transfers directly to another.