Why is the stock exchange called a barometer of the economic and business conditions in a country ignou bcome?
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Heya....
Stock exchange called the barometer of the economic & business conditions in country because....
** It determines that what the standard of shares are present in the economy...
** Shares are the best and important way of investing and it has high % in economy so it's Census effect all the economy...
** It analysis the prices of gold and silver in once economy....
Stock exchange called the barometer of the economic & business conditions in country because....
** It determines that what the standard of shares are present in the economy...
** Shares are the best and important way of investing and it has high % in economy so it's Census effect all the economy...
** It analysis the prices of gold and silver in once economy....
Answered by
5
Stock exchanges are not only used as a platform in order to carry
business transactions but they are the barometers that helps in
indicating the general conditions of the business atmosphere. One can
measure the economic and business conditions with the help of stock
exchanges as they provide real and accurate information about the
companies. Prices of securities rise during economic and business
prosperity periods. When economic stagnation occurs or business
activities slowdown due to depression in the markets, prices fall.
Security prices change with the change in economic, social and
political conditions.
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