1) Stock market: This is a type of financial market where individuals and institutions can buy and sell shares or stocks of publicly traded companies. Trading in the stock market allows investors to own a part of a company and potentially earn profits through capital gains or dividends.
2) Bond market: Also known as the debt market, the bond market is where governments, corporations, and other entities issue bonds to raise capital. Bonds are fixed-income securities that represent a loan made by an investor to the issuer. Investors can buy and sell bonds in the market, and earn interest income through periodic coupon payments.
Name two types of financial markets
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