Stock exchanges play a crucial role in the global economy by providing a platform for the buying and selling of stocks, bonds, and other securities. They serve as a barometer for the overall health of the economy, as stock prices tend to rise when the economy is strong and fall when it is weak. Stock exchanges also provide companies with a way to raise capital by issuing stocks and bonds, which can be used to fund expansion and growth. Additionally, they provide investors with an opportunity to earn a return on their investment through capital appreciation or dividends. Overall, stock exchanges play a vital role in facilitating economic growth by providing a mechanism for the efficient allocation of capital.

Stock exchanges play a crucial role in the global economy by providing a structured platform for buying and selling securities such as stocks, bonds, and derivatives. They facilitate capital formation by allowing companies to raise funds through initial public offerings (IPOs) and subsequent issues, enabling business expansion and innovation.

By offering liquidity, stock exchanges ensure that investors can easily enter and exit positions, which enhances market efficiency and stability. They also provide price transparency through continuous price discovery, reflecting the collective sentiment of market participants.

Moreover, stock exchanges uphold regulatory standards and corporate governance by enforcing disclosure requirements and compliance, fostering investor confidence. Ultimately, these functions contribute to economic growth, wealth distribution, and financial inclusion, making stock exchanges vital components of the global financial system.