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How do financial markets function, and what are the main participants and instruments traded in these markets?

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Financial markets are platforms where individuals, institutions, and governments can trade financial securities, commodities, and other fungible items at prices that reflect supply and demand. The main participants in financial markets include investors, traders, financial institutions (such as banks and investment firms), corporations, and even governments.

The key instruments traded in financial markets include:

  1. Stocks: Represent ownership in a company and are traded on stock exchanges like the_