Understanding the Main Roles of Financial Markets [INFOGRAPHIC]

Simply put, a financial market is any marketplace where interaction takes place between those who require capital and those who have capital they wish to invest. This capital could include any financial asset such as loans, equities, bonds, and derivitives.

For any professional within the financial sector, a strong working knowledge of the various types of financial markets and the important roles they play in our capitalist society is absolutely necessary. This is why “Financial Markets” led by Dr. Mike Highfield is one of the required courses for all freshmen students attending the Graduate School of Banking at LSU.

In the course, students develop the foundational finance knowledge needed to complete all remaining coursework at GSBLSU. The infographic below highlights just one of the many topics covered: the various roles of financial markets. By understanding the bottomline purpose of these markets, students are better able to understand all instruction that follows, including the role of intermediaries, the nature and functions of money, the level and structure of interest rates, diversification, and much more.