The basic elements of the financial market are divided into the following four parts:

1. Participants in the financial market: government departments, which raise funds by issuing bonds. Industrial and commercial enterprises are fundraisers or fund providers. Financial institutions are the most important participants in the financial market. There are mainly deposit financial institutions, non-deposit financial institutions and the central bank. Personal: It is a fund supplier in the market.

2. Financial instruments: written documents produced in credit activities that can prove the amount, term and price of financial transactions.

3. Organizational form of financial market: refers to the way of conducting financial transactions.

4. Financial market management: refers to the management conducted by the central bank and relevant regulatory authorities to maintain the normal order of the financial market.

Extended data:

1. The financial market can quickly and effectively guide the rational flow of funds and improve the efficiency of fund allocation.

(1) expanded the opportunities of contact between the supply and demand sides of funds, facilitated financial transactions, reduced financing costs and improved the efficiency of capital use.

(2) Financial markets have opened up broader financing channels for fundraisers and investors.

(3) The financial market provides necessary conditions for the mutual conversion of financial instruments with different maturities and contents.

2. Financial market has pricing function, and the fluctuation and change of financial market price is a barometer of economic activities.

(1) All financial assets have a face value.

(2) Only through the interaction between buyers and sellers in financial market transactions can we "discover". That is to say, the valuation must be based on the price of financial assets related to enterprises formed by market exchange, and not simply on the book figures of accounting statements.

(3) The pricing function of the financial market also depends on the perfection and efficiency of the market.

(4) The pricing function of financial market is helpful to realize the function of market resource allocation.

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