An essay on the stock market

Stock markets Stock markets play a vital part towards the economy of a country. The stock market most important role is supporting the growth of the industry and commerce in the country eventually affects the economy of the country to a great extent. That is the reason that a rising stock market is the sign of a developing industrial sector and a growing economy of the country. Thus, the government, industry and even the central banks of the country must keep a close watch on the happenings of the stock market.

An essay on the stock market

In this essay we will discuss about Stock Exchange in India. After reading this essay you will learn about: Meaning of Stock Exchange 2. Features of Stock Exchange 3. Major Problems in Trading 6. Essay on the Meaning of Stock Exchange: Industrial securities market can be broadly divided into two parts, i.

Thus the primary market or NIM deals with new securities, i. On the other hand, the stock market is a potential market for those old securities which are already issued and also granted stock exchange quotation.

Thus the stock exchanges usually provide a systematic regular and continuous market for both buying and selling of old securities. The main differences between NIM and stock exchanges are mostly related to: By the term stock exchange, we mean a market where stocks, shares and other kind of securities are bought and sold.

In this market owners can dispose of their securities as per their likings. The present large scale production system favours formation of joint stock company or corporate form of organisation which is quite suitable for securing large amounts of capital from those people who possess surplus funds and are willing to take risk and invest them profitably as per their own convenience and temperament.

The buyer of stocks and securities can realise their invested capital by selling those stocks and shares to others ready to buy the same at the prevailing price in the stock exchanges. Thus the stock exchange or market is a designated place where shares, stocks and other securities arc bought and sold.

Stock market or exchange is, therefore, an important institution for running the corporate type of firm in a smooth manner. Essay on the Features of Stock Exchange: It would be better to identify some of important features of stock exchange.

Following are some of these features: Stock exchange can be termed as voluntary association where various individuals join together and thereby form a private or public limited company so as to initiate the activities of stock exchange. The stock market must be recognised by the government under the Securities Contract Regulation Act, Moreover, the stock exchange may or may not be registered under the Act.

The stock exchange has framed by-laws to settle disputes etc. The stock exchange does not involve itself in the business of buying and selling of securities rather it provides facilities for buying and selling of securities for its members.

Essay: Stock markets - Essay UK Free Essay Database

The management of stock exchange is entrusted to its governing body whose composition differs from one another. The body functions as per the constitutional provisions and by-laws of stock exchange.The Stock Market Crash Began the Great Depression Essay example - Investing millions a year, stock investors never thought the system would fail, but one day, it all went away.

The stock market crashed leaving millions without work. 1. Essay on the Meaning of Stock Exchange. Industrial securities market can be broadly divided into two parts, i.e., namely, primary markets or new issues market (NIM) and secondary markets or stock markets.

Stock Market Essay Examples. 58 total results.

An essay on the stock market

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Words 4 Pages. The Stock Market The stock market plays a significant role in the health of the economy; the economy has to be strong for a country and its citizens to prosper. In over a period of two weeks 30 billion dollars disappeared from the U.S.

economy, this was the event that started the greatest period. The Stock Market is an area of which I have very little knowledge of, and therefore decided to research as my topic for this paper.

Though it plays a very important role in nearly every section of our lives, I can't say I know much more than nothing about it. I found that the stock market is an /5(5).

Essay on Stock Exchange