Yes, if the stock market was not there, what would it be? We will get to know what are the benefits related to this. It is a simple matter; you do not lose money. If there would no economic crises. In the same way, Productivity should increase if people would have money. Productivity increases, so will the capital requirement increase. We look for investors when there is a capital requirement. The investor will invest if he gets stock (Share in business). This is part of an economy.
The benefit of the stock exchange to the community
The stock market was there before, still is, and will continue to be. Whenever a business needed money,
Investors are always there. Both are dependent on each other. Here are some points that I would like to share with you.
Savings of people are kept somewhere. Sometimes they kept in a piggy bag or sometimes in a bank savings account and post office. The bank earns a lot of interest by giving your money to another day after day. Instead of investing in the bank, they think about investing by the investor himself.
Impact of the stock market on economic growth
So, while people invested themselves, he started investing in new and old ideas. People started benefiting from this as well as their own interests. The money which used to be lying in the bank started moving around in the economy.
People start earning more money by using this cashflow. Due to the flow of this money, the government tax is also formed. Every business needs money, but it is not easy to get it. Banks ask for collateral to give loans. And the new business does not even have that many assets. Most of the business issues its own IPO, for the money. Here the stock market is very useful. By using this money, the business gives that much convenience. By their products and services. If there is no stock market, you would get all this after many years.
Creative Investments
You must believe that not everyone is creative. To make that lot of money, there must be thought and keep coming. Creative ideas don’t come easily. This is an art. Investors always find it only for people.
For those who have this art, Investors put money on them and they make a lot of money.
. Not only do you get to invest in the business, but it also gets a chance to choose. With this provision, you can divert your money. Diversification not only returns you; it also gives you safety. Which is the biggest issue of investment.
So, you got a lot of returns from the stock market, Good quality safety by divarication, Support in the economy. Now you must know how important it is to have a stock market.