why is the stock exchange called a barometer of the economic and business condition in a country
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You may be surprised to discover the no. of stock market blanketing the globe even a country not know for having a sophisticated economy like rawanda relies on hi stock exchange to rise help business raise captial and give investor to back knew and establish enterprise rawanda are likely to invest their stock market to build wealth as people in other nation which prove that the role of the stock exchange in any economy is universal.
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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. ... When economic stagnation occurs or business activities slowdown due to depression in the markets, prices fall.
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