The most important and basic function of the financial market is

The financial intermediary function is the most important and basic function of the financial market.

Financial market has the following important functions: (1) monetary fund financing function; (2) Optimize the function of resource allocation; (3) Economic adjustment function; (4) pricing function; (5) Risk dispersion and risk management functions.

Among them, monetary financing is the most important and basic function: on the one hand, it provides funds for those with insufficient funds, on the other hand, it provides investment opportunities for those with surplus funds. This is also the initial reason and motivation of the financial market, and other functions are gradually produced with the continuous development of the financial market and the emergence of new demands.

Financial market refers to the general name of places that operate monetary fund lending, foreign exchange trading, securities trading, bond and stock issuance, and gold and other precious metals trading. The combination of direct financial market and indirect financial market constitutes the whole financial market. Financial markets can be classified from different angles: (1) According to the financing period, they can be divided into short-term financial markets and long-term financial markets. Short-term financial market, also known as money market, includes bill discount market, short-term deposit and loan market, short-term bond market and interbank lending market. Long-term financial market is also called capital market, including long-term loan market and securities market. (2) According to the transaction object, it can be divided into local currency market (including money market and capital market), foreign exchange market, gold market and securities market.