The stock market is an essential part in today’s economy. It is also called the backbone of an It is known as world most growing market. It plays a vital role in the growth of industry & commerce. It is the primary source for any company for raising funds. It is essential both for an industrial company as well as investors.
Why are share markets essential?
Stock markets are only attractive for those who want to buy or sell their products. Enable companies to wants to trade publicly to raise their capital. Of course, today’s market is challenging for treading shares, no doubt about that. But stocks remain the most popular investment choice all over the world.
- The primary purpose is to exchange stocks.
- These markets promote investment. This investment is the key to the economic growth of a country.
- Stock markets provide capital.
- Share market provides a way for investors to invest their money(knowing that the risk of losses money)
- Stock market gives a chance for selling and buying shares.
- Different companies earn money from a stock market and invest it in their own business.
- It helps to determine the current price of these shares.
Role of share market in a developing country
The economy of a Developing country depends upon the stock market. Because many companies invest their full money in a stock market, if they fail to earn money from a stock market, the future of a company will be in danger. It is a measurement of a companies liquidity.
Stocks trade by millions every day throughout the world. So you can easily trade, sell and buy trades. The stock market has a significant influence in today’s economy.