Abstract: Finance is like blood for any organization. If finance is taken out of an organization, whole system will collapse. Stock markets are important in order to increase the investment in any company. The importance of stock market cannot be neglected in the economy of a country. This paper will explain various types of stock markets, how do they operate, and how they impact the economy of a country. There are two types of stock markets in any country, primary markets and secondary markets. The company that is attracting the investors with the first time share issue receives money through Initial Public Offering (IPO). Dealers and brokers are found in a stock market who are important part of stock market operations. Stock market impacts the economy of a country in many ways. The strength of stock market shows the strength of the country’s economy. Stock market makes the cash and investments available for the companies. With the availability of investment, corporations perform better and add to the economy of the country. There are certain economic factors that impact the stock market as well. These factors include inflation and interest rates. As a conclusion it can be said that the role of stock market for the betterment of a country’s economy can never be ignored.
Keywords: Stock market impacts, investment, Corporations perform, Initial Public Offering (IPO).
Title: Role of Stock Market in the Economy of a Country
Author: Hassan Almomen
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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