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Within the field of economics, the term market typically refers to the aggregate of possible buyers and sellers with respect to a particular good or service, and the transactions and exchanges that occur between them. A financial market, then, is a market in which people participate in trade or exchange of financial securities (in the form of stocks, bonds, equities, or shares), commodities (such as precious metals, minerals, or agricultural products), and other items of value according to a set transaction cost that reflects the current supply and demand relations within their associate industry.
Financial markets are typically defined through principles of transparent pricing, standard trade regulations, established fees for services, and price determination of trade worthy assets via market forces. They can be found in almost every nation in the world, ranging in size from markets with a few participants to global giants such as the Forex markets and New York Stock Exchange, which trillions of dollars on a daily basis. Financial markets consist of primary and secondary markets, which define the type and origin of monetary goods that circulate within them. Primary markets are markets in which the original owner is responsible for selling an item or service, and in the majority of cases, the sale of the item only occurs in the primary market the first time the item changes ownership. Secondary markets exist for the purpose of selling monetary goods without any relation to the original issuer, such as buyers of stock within a primary market re-selling it to other interested parties.
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