Question

What is the effect on the market when suppliers under invest in their business

Answer 1

The lower price for a firm's shares means that it can raise a smaller amount of funds, and so investment in plant and equipment will fall.

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Answer 2

The stock market affects individual businesses in an economy in many different ways. In the United States there are just under 4,000 publicly-traded stocks that can be divided broadly into 11 global industry classifications (GICS).12 With daily movements across the board, there can be a multitude of effects.

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