Markets & Investments
In an era of economic uncertainty and rapid change, understanding markets and investments is no longer a luxury reserved for the wealthy—it’s an essential skill for financial resilience and growth. This guide demystifies the core concepts, explores the major market types, and outlines foundational investment principles to help you navigate your financial journey.Investments The Engine Room – What Are Financial Markets? At its simplest, a financial market is any marketplace where buyers and sellers trade assets like stocks, bonds, currencies, and derivatives. These markets are the circulatory system of the global economy, performing three critical functions: Price Discovery: They determine the value of assets based on supply and demand. Capital Formation: They channel savings from investors (like individuals and pension funds) to entities that need capital to grow (like companies and governments). When you buy a stock, you’re literally funding a company’s expansion. Liquidity: They provide a mechanism for investors to buy and sell their…