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 facilitatethe efficient allocation of financial resources by connecting savers and investors, thereby supporting capital formationand economic growth. This article examines the role and importance of financial markets in the economy, focusing ontheir impact on investment activity, financial stability, and economic efficiency. Particular attention is paid to the functionsof 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 andpromoting sustainable economic development. The findings suggest that strengthening financial market institutions andimproving regulatory frameworks are essential for ensuring long-term economic growth and resilience.