Financial markets are broad platforms where financial instruments are traded. They play a vital role in mobilizing savings and allocating resources efficiently. The main types include capital markets, money markets, derivatives markets, and forex markets. The capital market deals with long-term investments like stocks and bonds. Within this, the primary market enables companies to raise funds through IPOs, while the secondary market allows existing securities to be traded among investors. Money markets deal with short-term borrowing and lending, typically under a year, involving instruments like Treasury bills and commercial paper. The derivatives market allows trading of contracts like futures and options, providing risk management tools for investors. The forex market facilitates currency exchange and is the most liquid market globally. Each market serves a specific purpose and attracts different types of participants. This section explains how these markets function, who participates in them, and how they are interlinked. Understanding their differences helps investors choose where to allocate funds based on goals and risk appetite.