Stock exchanges play a critical role in the global financial markets and the broader economy. They provide a platform for companies to raise capital by selling shares to investors, which can then be used to fund expansion, research and development, and other business activities. This, in turn, can lead to job creation, innovation, and economic growth. Additionally, stock exchanges serve as a barometer for investor sentiment, and can impact market confidence and economic stability. The performance of stock exchanges can also impact international trade, currency exchange rates, and global financial flows, making them a vital component of the global economy.

Stock exchanges play a crucial role in global financial markets and the economy by providing a platform for buying and selling securities like stocks, bonds, and derivatives. They facilitate capital raising for companies, allowing businesses to grow, innovate, and create jobs. By providing liquidity and transparency, stock exchanges enable investors to assess company performance and manage risk effectively.

On a broader scale, stock exchanges influence economic growth. Rising stock prices boost wealth, consumer confidence, and spending, while a market downturn can lead to economic contraction. Additionally, they help governments and companies raise funds for development and infrastructure projects. Global interconnectedness through exchanges also means that financial events in one region can significantly affect economies worldwide.