Stock market is a place where buying and selling of security takes place. It’s a platform where the mutual interest of seller and buyer is protected by acting as a mediator between seller and buyer. It also help in raising capital from the general public once it is registered with stock market.
The liquidity that an stock market affords the investors gives them the ability to quickly and easily sell securities on the real time basis.
Stock market is also indicator of economic gdp of the country. Which means an economy where the stock market is on the rise is considered to be an up-and-coming economy.
Stock market acts as an index to show the country strength and weakness.
It means in the economy the sector for which stock price are increasing means there is lot of profit in the particular sector and the general public are interested to invest in the particular sector.
Share prices also affect the wealth of households and their consumption. Therefore, central bank tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the main function of central banks
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased pros
Stock market is also indicator of economic gdp of the country. Which means an economy where the stock market is on the rise is considered to be an up-and-coming economy.
Stock market acts as an index to show the country strength and weakness.
It means in the economy the sector for which stock price are increasing means there is lot of profit in the particular sector and the general public are interested to invest in the particular sector.
Share prices also affect the wealth of households and their consumption. Therefore, central bank tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the main function of central banks
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased pros
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