Back to: Store Management SS 2
Welcome to today’s class!!
We are thrilled to have you in our class!!
In today’s Store Management class, we will be learning about Importance of Stock Market
Importance of Stock Market
The term stock market refers to several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over-the-counter (OTC) marketplaces that operate under a defined set of regulations.
Both “stock market” and “stock exchange” are often used interchangeably. Traders in the stock market buy or sell shares on one or more of the stock exchanges that are part of the overall stock market.
The stock market allows buyers and sellers of securities to meet, interact, and transact. The markets allow for price discovery for shares of corporations and serve as a barometer for the overall economy. Buyers and sellers are assured of a fair price, high degree of liquidity, and transparency as market participants compete in the open market.
An investor may buy stocks and hold them for the long term, while a trader may enter and exit a position within seconds. A market maker provides necessary liquidity in the market, while a hedger may trade in derivatives.
Importance of The Stock Market
The stock market is a component of a free-market economy. It allows companies to raise money by offering stock shares and corporate bonds and allows investors to participate in the financial achievements of the companies, make profits through capital gains, and earn income through dividends. The stock market works as a platform through which savings and investments of individuals are efficiently channeled into productive investment opportunities and add to the capital formation and economic growth of the country.
The stock market offers a perspective of a country’s overall economic state. It helps the growth of firms and industries in a country. The power of the stock market in this regard is tremendous. There is no substitute for the stock market in establishing a strong and dynamic economy in a country. The following are some examples of the stock market importance:
- The Development of Capital
It is crucial to the generation of capital for firms. In addition to banks and other financial organizations, stock exchanges are crucial for creating long-term, massive quantities of cash.
- Spending Ideas
Participating in stock markets may stimulate customers to minimize their existing spending and boost their savings. As a result of the solution, individuals and entire sectors will be better off.
- Resources That Can Be Move
It promotes the economy by simplifying the movement of resources from households to firms in a timely manner. The development of a country’s economy relies significantly on the mobilization of resources.
In summary, Traders on the stock market include market makers, investors, traders, speculators, and hedgers.
Evaluation
What is a Stock Market?
Reading Assignment
Give five examples of people who trade the stock Market
Weekend Assignment
Identify five significance of the Stock Market
We hope you enjoyed today’s class. In our next class, we will be talking about Benefits of Shareholders
Let us know your thoughts and questions in the comment section, and we will attend to them as fast as we can.impor
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