THE ROLE AND IMPORTANCE OF FINANCIAL MARKETS IN ECONOMIC DEVELOPMENT

Financial markets play a crucial role in the functioning and development of modern economies. They facilitate
the efficient allocation of financial resources by connecting savers and investors, thereby supporting capital formation
and economic growth. This article examines the role and importance of financial markets in the economy, focusing on
their impact on investment activity, financial stability, and economic efficiency. Particular attention is paid to the functions
of financial markets, including liquidity provision, risk diversification, price discovery, and the mobilization of savings.
The study also highlights the significance of well-developed financial markets in enhancing macroeconomic stability and
promoting sustainable economic development. The findings suggest that strengthening financial market institutions and
improving regulatory frameworks are essential for ensuring long-term economic growth and resilience.