Importance of stock market Back to list

Member SinceJul 08, 2021

Posts 708


Jun 22, 2022 a 12:42
The stock market is one of the most significant parts of a free market economy.
It allows companies to raise capital by issuing stock and corporate bonds. Ordinary investors can participate in a company's financial success, profit from capital gains, and earn money in the form of dividends, although losses are also possible. While institutional investors and professional money managers have certain advantages due to their enormous cash reserves, superior skill, and risk-taking abilities, the stock market strives to create a fair playing field for regular individuals.

Individuals' savings and investments are channelled through the stock market into productive investment possibilities. It benefits the country's capital formation and economic success in the long run.

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