The meaning and function of financial market, what are its main problems at this stage?

Financial market refers to the activities and places of financing, currency lending and securities trading with a certain scale. The financial market does not have to be in a fixed place, and transactions completed by electronic communication can also be considered as part of the financial market.

Long before the formation of financial markets, credit instruments have been produced. It is the product of the development of commercial credit. However, due to the limitations of commercial credit, these credit instruments can only exist in buyers and sellers and do not have extensive liquidity. With the further development of commodity economy, on the basis of commercial credit, bank credit and financial market appeared.

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The emergence and development of bank credit and financial market, in turn, promoted the development of commercial credit, made credit instruments become trading tools in financial markets, and stimulated the potential importance of credit instruments.

In the modern financial market, although credit instruments are still the main trading tools, there are also stocks and other financial derivatives that reflect the relationship between equity and ownership. These are all tools for market financial transactions, so they are collectively referred to as financial instruments.