Question

Why is the stock exchange called a barometer of the economic and business conditions in a country ignou bcome?

Answer 1

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....

Answer 2

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.