It’s obvious that the economic activities across the world have experienced a massive boom since the dawn of industrialization. With increased and more companies and firms coming into being, the inter companies trading and intra companies trading has reached a pace never witnessed before. And also to regulate the interactive trading of those companies, there are 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 manufactured on stock exchange floors on physical basis. Various investors and purchasers outcry verbal bids on a particular share and would get it. Now these bidders may either be small investors purchasing a few 1000s of dollars and they may otherwise be large scale investors and traders contending with bids worth huge amounts of money each day. Another mode of transaction in Stock Market Exchange is the virtual bidding where online sources are employed 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 important to mention that the world economy has a significant influence of the stock markets inside their upheaval and deflation. Just to get an understanding of the volume of economic concerns in the stock markets, it might be interesting to know that the overall volume of money being under exchange stock markets was greater than 36 trillion dollars in the beginning of 2008, a figure that speaks tons about the significance of these economic hubs. And every following year, this figure is increasing.
Thus, stock market does behave as a very safe and facilitating house for the economic activities in any country. Ny Stock Exchange, London Stock Exchange, Bombay Stock Market Exchange and Tokyo Stock Exchange are a couple of the most renowned stock exchange markets working across the globe. These stock exchanges are working since a lengthy period of time and have helped clients deal into business of trillions of dollars over the most recent decades.
Thus, it could be very safely figured that without having the role of stock exchange markets considered in a country, the economic development of the country and the survival of the national and international companies doing work in the country can not be assured. Different countries are receiving their own rules and policies to sustain the existence of their stock exchange markets and the indices of those stock exchange financial markets are a true determinant of the daily, weekly, monthly and annual expansion of the country.