Stock exchanges have multiple roles in the economy, this may include the following:
[1]Raising capital for businessesThe Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.
[2]Mobilizing savings for investmentWhen 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 stronger economic growth and higher productivity levels and firms.
[1]Raising capital for businessesThe Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.
[2]Mobilizing savings for investmentWhen 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 stronger economic growth and higher productivity levels and firms.
Good one! Thanks for sharing. By the way What's the benifit of investing in funds over the individual stocks and bonds?
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