Question

Stock exchanges are the financial barometers of an economy'. How?

Answer 1

1. Stock exchanges are the financial barometers and development indicators of national economy of the country.  

2. It help businesses to raise capital and give investors opportunities to back new and established enterprises.  

3. It also help business and entrepreneurs to come together to buy and sell trade shares for the purpose to raise more capital.  

4. Continuous growth of industries is reflected in the index of stock exchange.  

5. Rising stock market, through rising prices, more investors can create a sense of confidence and gives positive direction in the growth of an economy.