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 fund 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) The intrinsic value of corporate assets-including the value of corporate debt and the value of shareholders' equity-can only be "discovered" through the interaction between buyers and sellers in financial market transactions. 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.

3. Financial market provides conditions for financial management departments to implement indirect financial supervision. (1) The indirect financial control system must rely on the developed financial markets to transmit the policy signals of the central bank, guide the behaviors of microeconomic entities through the price changes in the financial markets, and realize the intention of monetary policy adjustment. (2) Within the developed financial market system, the sub-markets are highly correlated. (3) With the improvement of various financial assets reserve positions and liquidity reserve ratio of financial institutions, financial institutions will participate more widely in the operation of financial markets, and the scope and intensity of indirect regulation by the central bank will be continuously strengthened with the development of financial markets.

4. The development of financial market can promote the innovation of financial instruments. (1) Financial instruments are a set of standardized contracts that combine expected returns and risks. (2) Diversified financial instruments enable investors with different risk and return preferences to seek the investment that best meets their needs by more finely dividing the risks inherent in various investments in the economy. (3) Diversified financial instruments can also meet the diversified needs of financiers as much as possible. 5. Financial market helps to realize risk dispersion and risk transfer. (1) The development of financial market has promoted the diversification of residents' financial assets and the decentralization of financial risks. (2) The development of financial market opens the way for diversification of residents' investment, financial assets and bank risks, and provides conditions for sustained and stable economic development. (3) By choosing a variety of financial assets, residents can flexibly adjust the storage form of surplus currency, thus enhancing their investment awareness and risk awareness.