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Stock markets are an integral part of all major Western economies. They provide unique services and benefits to corporations, individual investors and governments. A corporation able to make an Initial Public Offering IPO on the stock exchange gains access to a huge universe of investors and a ready supply of new capital for their business.

Once listed there is the opportunity for further issuance if needed.

Access to the stock markets also facilitates growth by merger or acquisition through share purchases. Equities have no maturity data and no fixed rate of return.

This makes them a riskier investment than money markets or bonds. What equities provide is the prospect of a combination of income and capital gains, plus a superior rate of return.

The stock market gives the flexibility to invest small or large amounts and the choice of a vast number of different corporations and industries in which to invest. If individuals keep their savings in cash, or even a bank account, there is little or no benefit to the economy. Investment in stocks, however, is a direct investment in the success of individual businesses and helps promote stronger economic growth.

Although the health of the economy can not be directly correlated with the performance of the Stock Market, it is true that the performance of share prices in general will be a good indication of it's current condition and of the confidence of individuals within that economy. The regulations required for a corporation's stock to be listed on the Stock Exchange and the ongoing requirements to maintain that listing are a good way to ensure that management standards and standards of record keeping within that corporation are stock market crash of 1987 at a high level.

There have been notable exceptions, but generally record keeping of publicly quoted companies has been shown to be better than that of private companies.

In addition to corporations, governments themselves may issue bonds that are quoted on the Stock Market to raise money for infrastructure, or other major projects.

The Role of the Stock Exchange in the Economy | gepahotalefi.web.fc2.com

The stock exchange allows individuals fx trade australia lend money secondary stock market transactions their government to fund their programs.

To see the latest news affecting the stock market and how the index is performing, go to Updown's home page. To trade your portfolio, follow this link.

The process what are the roles of stock exchange market determining the current value of stock or other assets continue reading. Make a suggestion for this page.

Overview Glossary Investing Trading Investing and Trading Strategies Fundamental Analysis Technical Analysis Contests and Groups Stock Contests Investing Clubs and Groups Stock Events Stock Dividends Stock Splits Mergers and De-listings Stock Classifications Types of Stock Blue Chip Stocks v. Penny Stocks Market Cap Size Segmentation Cyclical Stocks Growth v. Value Apexinvesting how to win in binary options cftc Income Stocks Tech Stocks Industry Segmentation ETFs Leveraged ETFs Stock Market History Famous Investors Stock market Booms what is the difference in the binary options brokers Crashes Background Information What is a Stock?

Why Do Companies Issue Stock? Shareholder's Rights The Role of the Stock Market Recommended Reading.

The role of the Exchange - London Stock Exchange

The Role of the Stock Market Stock markets are an integral part of all major Western economies. Benefits for Corporations Raising Capital A corporation able to make an Initial Public Offering IPO on the stock exchange gains access to a huge universe of investors and a ready supply of new capital for their business.

Benefits for the Economy Putting Peoples' Savings to Work If individuals keep their savings in cash, or even a bank account, there is little or no benefit to the economy.

Measure of the Economy's Performance Although the health of the economy can not be directly correlated with the performance of the Stock Market, it is true that the performance of share prices in general will be a good indication of it's current condition and of the confidence of individuals within that economy.

Corporate Governance The regulations required for a corporation's stock to be listed on the Stock Exchange and the ongoing requirements to maintain that listing are a good way to ensure that management standards and standards of record keeping within that corporation are maintained at a high level.

Access to Funds for Governments In addition to corporations, governments themselves may issue bonds that are quoted on the Stock Market to raise money for infrastructure, or other major projects. Investing Glossary Word of the Day "valuation" The process of determining the current value of stock or other assets continue reading A B C E F G H I J K L M N O P Q R S T U V W X Y Z Browse Glossary Search.

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