Financial markets in the period of uncertainty – focus on the Slovak financial market

Abstract

Economic environment has changed significantly in recent days due to the COVID19 and measures the governments apply to combat it will inevitably cause the substantial shrinkage of economies due to reduced economic activities on the national as well as global levels. As a result, financial markets have been under great stress because there is no prediction on the size, scope, and duration of this situation. Simultaneously this causes a great uncertainty. It is obvious that financial markets play crucial role in the general good standing of economies because they are serving as a channel through which funds are transferred to and between entities on the market. Financial and monetary systems are a part of the economic system whereby for the latter it is important the former to be as stable as possible. In order this to be achieved or at least risks caused by uncertainty to be reduced both in short-term as well as long-term perspectives a wide scope of traditional as well as modern the financial market regulations have been applied and here we are going to present at least some of them.