captyasir
New member
- Joined
- Sep 23, 2016
- Member Type
- Student or Learner
- Native Language
- Urdu
- Home Country
- Pakistan
- Current Location
- Pakistan
Stock market is a place where securities or company shares are listed as well as bought and sold is called stock market. Trading is done either through stock exchange or over the counter market. Equity market is the other name of stock market. Investors and companies mutually benefitted each other, by getting access to the capital and a slice ownership in the company. The role of Stock exchange is very important for economic development and growth. Business activities in the country are boosted by stock exchange through selling shares and raising capital for the company. Savings of the people, if are allocated to invest in stock exchange, instead of keeping it idle somewhere, it will promote productivity and confidence in the economy. Not only large investors can participate and take ownership in the company but small investors also get a change and participate by buying shares up to their buying power. In this way, it prepares and organizes the domestic resources and passes them into some productive investment. An efficient and stable stock market prices is directly related with economic stability. Any recession, depression or prosperity in the economy can change the stock market price momentum.
Also the market forces through supply and demand factors, determine security prices. As security prices incorporate the effect of all the relevant fundamental factors. There can be a long list of such factors some of them are Demand and Supply, Firm size, Market trend, Profitability, Asset turnover, Leverage, Dividends, Company management, Growth perspective, Future plans, Macroeconomic factor (Interest rate, Inflation, GDP growth rate and stock market trend), Government regulation etc
Also the market forces through supply and demand factors, determine security prices. As security prices incorporate the effect of all the relevant fundamental factors. There can be a long list of such factors some of them are Demand and Supply, Firm size, Market trend, Profitability, Asset turnover, Leverage, Dividends, Company management, Growth perspective, Future plans, Macroeconomic factor (Interest rate, Inflation, GDP growth rate and stock market trend), Government regulation etc