Mr. Rohit is a holder of financial securities in Futura limited. He wants to sell his securities to purchase new securities of another company. You are required to suggest him the markets where he can sell his securities and describe the concept. Explain two functions of that market.

Financial Market: This market refers to that market where financial securities are exchanged.

Functions of Financial Market:

1. Facilitates Price Discovery: The price of any goods or services is determined by the forces of demand and supply. Like goods and services, the investors also try to discover the price of their securities. The financial market is helpful to the investors in giving them a proper price.
2. Provides Liquidity Financial Assets: This is market where the buyers and the sellers of all the securities are available all the times. This is a reason that it provides liquidity securities. It means that they invest their money, whenever they desire, in securities through the medium of a financial market. They can also convert their investment into money whenever they so desire.