TRADING HISTORY
OF THE STOCK IMPORTANCE OF THE STOCK
BEHAVIOR OF THE STOCK STOCK EXCHANGE ROLE OF STOCK EXCHANGE
AMERICAN STOCK EXCHANGE AUSTRALIA ST EXCHANGE
LONDON STOCK EXCHANGE BOMBAY STOCK EXCHANGE
KUWAIT STOCK EXCHANGE NYSE HONG KONG STOCK EXCHANGE
HOME PAGE
Stock exchanges have multiple roles in the economy,
this may include the following:
Raising capital for businesses
The Stock Exchange provides companies with the facility to raise capital for
expansion through selling shares to the investing public.
Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more
rational allocation of resources because funds, which could have been
consumed, or kept in idle deposits with banks, are mobilized and redirected
to promote business activity with benefits for several economic sectors such
as agriculture, commerce and industry, resulting in a stronger economic
growth and higher productivity levels.
Facilitating company growth
Companies view acquisitions as an opportunity to expand product lines,
increase distribution channels, hedge against volatility, increase its
market share, or acquire other necessary business assets. A takeover bid or
a merger agreement through the stock market is one of the simplest and most
common ways for a company to grow by acquisition or fusion.
Redistribution of wealth
By giving a wide spectrum of people a chance to buy shares and therefore
become part-owners (shareholders) of profitable enterprises, the stock
market may help to reduce large income inequalities. However, capital losses
may also happen. Both casual and professional stock investors through stock
price increases and dividends get a chance to share in the profits of
promising business that were set up by other people.
Continue Page 2...