This paper deals with the analysis whether financial markets have an impact on economic growths. Firstly, financial market is a broad term which describes a market place where people trade their financial securities including bonds, currencies and equities, and precious metals and agricultural products. It also includes commodities, and other fungible items of value at very low transaction cost and also at prices that affect the supply and demand. The status of the financial market depends upon the transaction of trade on the basis of which financial market can be classified as small depending upon low activity and big which trades in billions, trillions etc. for example small financial market can be of an individual person with low capital, securities or investment whereas the example for large market if foreign exchange market. In the financial system funds flow from those who have surplus funds to those who have a shortage of funds, either by direct, market-based financing or by indirect, bank-based finance. The former British Prime Minister William Gladstone expressed the importance of finance for the economy in 1858 as follows: "Finance is, as it were, the stomach of the country, from which all the other organs take their tone. "The financial system comprises all financial markets, instruments and institutions. The financial system is also particularly important in reallocating capital and thus providing the basis for the continuous restructuring of the economy that is needed to support growth. In countries with a highly developed financial system, we observe that a greater share of investment is allocated to relatively fast growing sectors.