Financial markets refers to an elaborate system of the financial institution and intermediaries and arrangement put in place and developed to facilitate the transfer of funds from surplus economic units (savers) to deficit economic units (investors). Savers include individuals, small businesses, family units’ savings through institutions such as SACCOs, banks, insurance firms, pension
Investors include government, companies, family units etc. It should however be noted that financial markets are different from commodity markets. Physical or commodity markets deal with real assets such as tea, coffee, wheat, automobile etc. while financial markets deal with financial instruments and facilitation of funds transfer.