Investment Sight

Financial market is the place where buying and selling of shares and securities happen. This acts as a mean for the buyers to sell their products. We will look at the financial markets of two countries namely United States and India.

United States financial market is considered to be the oldest financial markets. Trading was happening in their history since 13th century. The financial market condition in a country directly affects the economy of the country. The currency value of the country also has a direct relationship with the financial market situation. For this same reason, the currency value of dollar is always high compared to other countries.

United States financial market has the largest number of business involved and its financial market is well known for the very high amount of capital each company raises.  United States economy is proportional to the world’s economy. If there is a slowdown in the financial market in U.S, then certainly it will have an impact on most of the developing and developed countries.

The global recession which shocked the entire world had its origin form here only. Liberalization of the loan rules and regulations by the U.S government was considered as the main cause for the financial market crisis all over the world. The companies involved in the financial market in U.S do have their operations in other parts of the world.

Indian financial market has been one of the oldest among the existing big financial markets. Indian financial market mainly comprises of primary market, banking, insurance and asset management’s. The concept of financial market came to India as early as 18th century where India was ruled under East India Company. Precisely market operations started at 1875. During the middle of 19th century there were around 200 security brokers trading actively.

Later, with the development of financial market, this count got increased and presently there are huge number of agencies and exchanges. Majority of financial market activities took place around Mumbai, Kolkata and Ahmadabad. Then security exchanges were started in eight other places. Now, there are totally 23 exchanges in India. Out of these, Bombay stock exchange and National stock exchange are the major contributors to the financial market in India.

Financial market statuses have a direct impact of the economy of the country. It promotes the savings among people and also encouraged companies to expand their line of business. In this market, the price value of securities always depends on the buyers and sellers in the market. The other factor which determines the price is the demand and supply. If both these parameters are in a good ration and certainly the price of the product would be in a good state.

Financial market trading was termed as rich men’s hobby in those days. But, with the increase in the awareness among people and with the availability of easy modes for buying and selling securities/shares, many middle class people prefer this industry for getting high returns on their investment.