(1) financing function
In real economic life, there are always fund suppliers and demanders with different goals. The emergence and development of financial markets have created conditions, provided media and places for the financing and the realization of goals of both the capital supply and demand sides. With the development and perfection of financial market, its financing function is further highlighted.
(2) the function of regulating funds
The function of financial market to adjust funds is mainly manifested in the dynamic process. When the supply of funds exceeds the demand, the interest rate will drop and the financing cost will be reduced, thus stimulating the increase of demand and finally balancing the supply and demand of funds; Otherwise, the situation is just the opposite.
(3) Fund accumulation function
The capital accumulation function of financial market is mainly realized through the long-term capital market, which promotes the transformation from savings to investment. In the long-term capital market, demanders (mainly enterprises and government departments) concentrate their funds on investment by issuing stocks and bonds, guiding the flow and combination of materials and production factors, and realizing the value appreciation of funds.
(4) Effective allocation of funds.
While financing, regulating and accumulating funds, the financial market also has the function of promoting the rational flow of funds and realizing the optimal allocation and effective utilization of resources. In the financial market, capital suppliers always regard high-yield financial instruments as their investment objects, and the yield of financial instruments depends on the profit rate of economic entities. This urges the fund demanders of enterprises and government departments to obtain funds from the market on the premise of high efficiency in the use of funds. According to the price mechanism and competition mechanism, the financial market effectively guides the rational flow and reorganization of funds among different regions, industries and enterprises, improves the efficiency of capital use, realizes the optimal allocation of resources and promotes the adjustment of economic structure.
(5) Risk prevention function
The risk prevention function of the financial market is mainly manifested in the following aspects: ① There are a variety of financial instruments to choose from in the financial market, which is conducive to investors' portfolio investment, which can not only spread investment risks, but also improve the safety and profitability of assets; (2) The financial market provides different kinds of participants with the convenience of hedging and speculative arbitrage, which not only helps to transfer and spread risks, but also enhances the liquidity of financial instruments and improves their liquidity; Financial market is a highly organized market, and the continuous improvement of relevant laws and regulations makes financial transactions more standardized and orderly, thus increasing the security of financial transactions.
(6) Economic information function
Financial market is a "barometer" of the national economy, and its economic information mainly shows as follows: ① the transaction situation and changes in financial market indirectly or directly reflect the tightness and changes of monetary policy; As an important part of the financial market, the stock price index of the stock market has the most sensitive reflection on the country's economic and financial situation; With the improvement of financial integration and internationalization, the financial market will be able to provide information about the whole world financial situation and reflect the world financial trend in time.