The stock market is considered important from the point of view of the industry as well as the investors.
Options trading education helps to inculcate the necessary skills and knowledge in stock trading.
They are an important segment of the economy.
The markets play an important role in ensuring the growth of commerce and industry of the country.
This in turn affects the country's economy largely.
This explains why the government and central bank keeps a close watch on the progress of the stock market.
Their importance of include: · Raise funds When any listed company wants to raise funds to settle a new business venture or for further expansions, they have the option of issuing shares through stocks.
Alternatively, they can consider taking up loans from the financial institutions.
The market offers the primary source considered by companies to raise money for business expansions.
In case a company seeks to raise capital for doing business, the organization can issue shares.
To get an opportunity to raise capital through the stocks, the company needs to be listed.
Therefore, the company will be in a position to get funds in exchange for the issued shares.
A company that is already listed can issue shares in exchange for collecting funds to cater for business expansion.
· Growing the economy The stock exchange plays a critical role in supporting growth of commerce and industry in the economy.
A market that is improving is a strong indication of an industrial sector that is developing and growing.
Therefore, the government and central bank take every opportunity to put in place measures that will ensure that the stock market is thriving.
Any roadblocks are eliminated and new policies are designed regularly to ensure a thriving market.
Therefore, companies that fail to operate according to the laid down rules are normally ejected from the market.
Furthermore, new companies that meet the minimum threshold are offered incentives to list in the stock market.
· Create employment It has created many jobs for people and companies that choose to engage in the stock market.
Many jobs have been created for brokers who participate actively in the buying and selling of shares on behalf of investors.
Brokers act as intermediaries between the stock buyers and sellers.
Once the stock buyer places an order to buy in the market, the brokers play an important role in finding sellers of the stock to close the deal.
Options trading education helps to inculcate the necessary skills and knowledge in stock trading.
They are an important segment of the economy.
The markets play an important role in ensuring the growth of commerce and industry of the country.
This in turn affects the country's economy largely.
This explains why the government and central bank keeps a close watch on the progress of the stock market.
Their importance of include: · Raise funds When any listed company wants to raise funds to settle a new business venture or for further expansions, they have the option of issuing shares through stocks.
Alternatively, they can consider taking up loans from the financial institutions.
The market offers the primary source considered by companies to raise money for business expansions.
In case a company seeks to raise capital for doing business, the organization can issue shares.
To get an opportunity to raise capital through the stocks, the company needs to be listed.
Therefore, the company will be in a position to get funds in exchange for the issued shares.
A company that is already listed can issue shares in exchange for collecting funds to cater for business expansion.
· Growing the economy The stock exchange plays a critical role in supporting growth of commerce and industry in the economy.
A market that is improving is a strong indication of an industrial sector that is developing and growing.
Therefore, the government and central bank take every opportunity to put in place measures that will ensure that the stock market is thriving.
Any roadblocks are eliminated and new policies are designed regularly to ensure a thriving market.
Therefore, companies that fail to operate according to the laid down rules are normally ejected from the market.
Furthermore, new companies that meet the minimum threshold are offered incentives to list in the stock market.
· Create employment It has created many jobs for people and companies that choose to engage in the stock market.
Many jobs have been created for brokers who participate actively in the buying and selling of shares on behalf of investors.
Brokers act as intermediaries between the stock buyers and sellers.
Once the stock buyer places an order to buy in the market, the brokers play an important role in finding sellers of the stock to close the deal.