It’s obvious that the economic activities across the world have seen a massive boom since the dawn of industrialization. With more and more companies and corporations coming into being, the inter companies trading and intra companies trading has reached a pace never seen before. And also to regulate the interactive trading of those companies, you will find international networks called “Stock Market” where the shares and derivatives of different companies and firms working at local, national and international levels are sold and purchased. The Stock Market therefore can be considered as the hub of monetary activities on offer in a particular economic region.
Discussing the mode of transactions being done in stock markets, the most practiced one is what we call “Open Outcry”. This is in reality a practice where transactions are made on stock exchange floors on physical basis. Various investors and purchasers outcry verbal bids on the particular share and would buy it. Now these bidders either can be small investors investing in a few lots of money and they may well be large scale investors and traders dealing in bids worth millions of dollars each day. Another mode of transaction in Stock Market Exchange is the virtual bidding where online sources are used to purchase and sell shares and derivatives. The only difference is that the bidders are not physically present on the stock market floor.
Further answering the question, “What Is Stock Market?” it is vital that you mention that the world economy includes a significant influence of the stock markets in their upheaval and deflation. Simply to get an understanding of the volume of economic concerns in the stock markets, it could be interesting to understand that the overall amount of money being under swap stock markets was a lot more than 36 trillion dollars in the start of 2008, a figure that speaks tons about the need for these economic hubs. Each following year, this figure is increasing.
Thus, stock market does act as a very safe and facilitating house for the economic activities in a country. New YORK Stock Exchange, London Stock Exchange, Bombay Stock Market Exchange and Tokyo Stock Exchange are some of the most renowned stock exchange markets working across the globe. These stock exchanges will work since a long period of time and possess helped consumers deal into business of trillions of dollars over the previous couple of decades.
Thus, it could be very safely figured that without having the role of stock exchange markets considered in the country, the economic growth of the country and the survival of the national and international companies employed in the country can’t be assured. Different countries are receiving their own rules and policies to sustain the presence of their stock exchange markets and the indices of these stock exchange markets are a true determinant of the daily, weekly, monthly and annual expansion of the country.