how does stock exchange improve the economy
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Answer:
Stock trading allows businesses to raise capital to pay off debt, launch new products and expand operations. ... Stock prices influence consumer and business confidence, which in turn affect the overall economy. The relationship also works the other way, in that economic conditions often impact stock markets.
Explanation:
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Answer:
The trading of stock in public companies is an important part of the U.S. economy. Stocks are a type of security that represent ownership interest in a company. Stock trading allows businesses to raise capital to pay off debt, launch new products and expand operations. For investors, stocks offer the chance profit from gains in stock value as well as company dividend payments. Stock prices influence consumer and business confidence, which in turn affect the overall economy. The relationship also works the other way, in that economic conditions often impact stock markets.