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What Is The Role Of Stock Market In The Economy?

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Ankit Srivastava Profile
Stock exchange play an important role in the economy by making the movement of money into the system. People invest their savings through the purchase of securities for making profit and to beat the inflation. This makes a flow of fund in to the economy. Increase in the market capitalisation of the companies make them strong and help in the economic growth by providing employment and by increasing production etc. If the circulation of money will stop then the money will be plunged in the hands of the people, the growth will be stopped, so the Stock exchange are very important in any economy.
Ana Dixit Profile
Ana Dixit , http://www.ashlaronline.com/, answered

The stock market is one of the most vigorous sectors which play an
important role in contributing to the wealth of an economy. Growth rate of the stock market signify growth percentage rise in economy. There is a strong
positive relationship between stocks. Stock market performance & economic growth are just like a two side of a coin. As the stock market increases, economy is also
fast in growth. On the other hand downturn in market performance means slowdown
of economy growth. 


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