Financial markets can be categorized into several major types based on the nature of the assets traded and their economic roles in the economy.

The stock market facilitates the buying and selling of shares issued by publicly listed companies. By purchasing shares, investors obtain partial ownership in a firm and may earn returns through dividends and capital gains. This market is essential for capital formation and long-term business financing.

The debt market, also known as the bond market, involves the issuance and trading of fixed-income securities such as government and corporate bonds. In this market, investors lend money to issuers in exchange for periodic interest payments and the return of principal at maturity. It is a key source of funding for governments and corporations and plays an important role in managing interest rate and credit risk.

The foreign exchange market enables the global trading of currencies. It supports international trade and investment by allowing participants to convert one currency into another. As the largest and most liquid financial market worldwide, it operates continuously across major financial centers.

The commodity market focuses on the trading of raw materials and primary products, including gold, oil, and agricultural goods. These markets contribute to price discovery and allow producers and consumers to manage the risks associated with price fluctuations.

The derivatives market consists of financial contracts whose value is derived from underlying assets such as stocks, bonds, commodities, or currencies. Instruments such as futures and options are commonly used for hedging risk, speculation, and portfolio diversification.