Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, and commodities. They play a crucial role in the economy by facilitating the flow of capital and providing businesses with the necessary funds for growth. Investors can buy and sell securities, which helps determine their market value based on supply and demand. These markets can be categorized into primary and secondary markets. In the primary market, new securities are issued, while the secondary market allows for the trading of existing securities. Overall, financial markets are essential for economic stability and growth, influencing everything from interest rates to investment strategies.