ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The stock market is important because
A
It is where interest rates are determined
B
It is the most widely followed financial market in the world
C
It is where foreign exchange are determined
D
All of the above
Explanation: 

Detailed explanation-1: -The New York Stock Exchange (NYSE) and the Nasdaq are by far the world’s largest stock exchanges by total market capitalization. However, shares are not the only things traded at exchanges like the NYSE and Nasdaq, with the same infrastructure also being used to trade other financial securities such as ‘derivatives’.

Detailed explanation-2: -The stock market is a component of a free-market economy. It allows companies to raise money by offering stock shares and corporate bonds and allows investors to participate in the financial achievements of the companies, make profits through capital gains, and earn income through dividends.

Detailed explanation-3: -Largest stock exchange operators worldwide 2022, by market cap of listed companies. The New York Stock Exchange is the largest stock exchange in the world, with an equity market capitalization of nearly 23 trillion U.S. dollars as of December 2022.

Detailed explanation-4: -Bond market The bond market offers opportunities for companies and the government to secure money to finance a project or investment. In a bond market, investors buy bonds from a company, and the company returns the amount of the bonds within an agreed period, plus interest.

There is 1 question to complete.