"Holders of assets can readily sell their financial assets through the mechanism of the financial market" - This statement highlight one of the functions of financial market.

Provides liquidity to financial assets

The correct answer is option 2- Provides liquidity to financial assets.

'Provides liquidity to financial assets' function is highlighted in the given statement.

Providing Liquidity to Financial Assets: Financial markets facilitate easy purchase and sale of financial assets. In doing so they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Holders of assets can readily sell their financial assets through the mechanism of the financial market.