We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The Impact of Stock Markets on Economic Growth - Essay Example

Comments (0)
Summary
This essay talks about the influence that the world stock markets exert on the world economy in terms of growth. Stock markets stimulates specialization, distribution and receiving relevant information. Stock markets can reduce significantly the costs of mobilizing savings and assist attracting foreign investors…
Download full paper
GRAB THE BEST PAPER
The Impact of Stock Markets on Economic Growth
Read TextPreview

Extract of sample
The Impact of Stock Markets on Economic Growth

Download file to see previous pages... This paper describes the mechanism of the of the impact of stock market on long-term economic indicators, regarding the growth of the economy. Main channels of stock markets influence on economic growth of a country are specified.
It is known that stock markets are connected with the economic growth through the creation of liquidity. It means that really profitable investments demand just long-turn capital commitment, but investors don’t want to relinquish their capital for such long time without any control. Actually liquid stock markets make their investments more secure and in such way more attractive. Stock markets allow investors to acquire equity (an asset) and then to sell it rather quickly and without any problems.
Liquid stock markets facilitate long-term investments and make them more profitable. It is apparent that stock markets are necessary and important for growth, because they improve capital allocation and in such a way they enhance prospects for long-term economic development. Stock markets as it was mentioned above make investments more secure and attractive.
Actually well-functioning stock market is useful and necessary for economic development through following issues: growth of investments and savings, effective and efficient resources allocation, better distribution and utilization of existing resources.
Volatility of stock markets had negative influence in France and Japan. Stock market volatility didn’t affect greatly the United Kingdom. Concerning Germany the volatility was stated to be insignificant. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economic Indicators' Impact on Different Stock Categories
It is not uncommon to see immediate swings in the stock markets following the release of economic data for the country. Quite naturally, correctly anticipating the economic indicators and being on the “right” side of the market can prove to be extremely profitable for an investor.
25 Pages(6250 words)Research Paper
The Impact of Sporting Events on Stock Markets
At first it is important to note that any major sporting event such as Olympics, Soccer World Cup, Cricket World Cup, Wimbledon etc. create a stir in nationalism. Such feelings are not visible in domestic games where victory of one team is one fan's joy and another's gloom and thus the overall mood in the country may not be the same.
3 Pages(750 words)Essay
Stock Markets
The efficient capital market hypothesis as applied to stock markets has affected the thinking of investment managers, corporate finance officers, and investors in the last three decades. This paper explains what the hypothesis is about based on a chapter in the textbook written by Elton, Gruber, Brown, and Goetzmann, and provides a critical assessment of its implications for the investor.
6 Pages(1500 words)Essay
Monetary Policy and its Effects on Stock Markets
Monetary Policy is a means to control inflation, one of the corrective tools of the Central Bank of a country. Presence of inflation in the current market and expected future requires the need for such a policy to ensure that inflation rates do not go above a specific percentage thus acting as a tool to curb inflation.
6 Pages(1500 words)Essay
Economic Growth and Economic Fluctuations
These theories include the exogenous growth model as well as endogenous growth model. This paper will represent an examination of the viability of several governmental initiatives aimed determining the if certain policies will facilitate economic growth whereby a developing nation is able to catch up with already developed nations and to maintain a steady-state after catch up.
12 Pages(3000 words)Essay
Economic growth in China and its impact on American economy
ation of Chinese Yuan, and the entire system of the country has captured the attention of international companies, particularly from North America and Canada. After the membership of the World Trade Organization, the developing country has turned into competitive field against
15 Pages(3750 words)Essay
The relationship between stock markets and economic development
However, this paper evaluates validity of the statement as to whether and how stock markets can actually contribute to economic growth of a country, and that this can be achieved up to what
10 Pages(2500 words)Essay
The impact of foreign direct investment on economic growth of less developed countries
a growth-augmenting constituent has received great interest from developed nations in general and less developed nations in particular in current decade. It has been an issue of great concern for several economists regarding how FDI influences economic growth of the host
6 Pages(1500 words)Essay
Finance- Global Stock Markets
The period covered will be from September 20 to late November 2010. The first thing that stands out on this graph is the remarkable stability, during the period covered, in both of these stock exchanges. The Israeli stock exchanges lowest point
4 Pages(1000 words)Essay
Explain how the development and growth of the stock market effects the real economy
Due to complex nature of various business a virtual setup is needed to be established which can make information regarding securities/ shares available to business entities and individual. Thus it can be
12 Pages(3000 words)Essay
Let us find you another Essay on topic The Impact of Stock Markets on Economic Growth for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us