What is Financial Markets
For many years, financial markets were merely a footnote in the mainstream media. They were viewed as rather benign creatures, barely worth discussion. The evening news might devote a few seconds to the performance of the Dow and a few other indexes before racing through the ups and downs of the major exchange rates. And that was it – bond markets usually went unmentioned.
All that changed with the global financial crisis of 2008. Financial markets became headline news. Suddenly everyone wanted to know about them and how they worked. Terms such as "toxic debt" and "securitization" entered into everyday use, soon to be followed by "sovereign debt" and "eurozone crisis."
The crisis was a watershed moment. It demonstrated to everyone that financial markets matter. What happens in them, and what happens to them, has always been of great concern to banks and other financial institutions.
But markets also matter to investors, borrowers, businesses, governments, and entire economies. And they should matter to you, not just because of the career you've chosen but also because they affect your everyday life.
