The foremost common function of the market is allocation perform. The financial market is said to cash. It allocates the obtainable provide of scarce sources to he prospective users. The financial market determines the speed of curiosity or the value of cash that allocates scarce resources.
Financial market is divided into open market and negotiated market. The open market means an impersonal market. In this market good quality securities are bought and sold in giant quantity. There will not be contract between patrons and seller. The safety market is an example of open market. In this market the equity securities of huge firms are bought and bought by big-small traders. The bonds of some firms are offered to the highest bedder via the open market. Such bonds are bought and sold many occasions before maturity. Most of the federal government securities are offered in the open market.
In this fashion, …