THE IMPACT OF STOCK MARKET ACTIONS ON ECONOMIC EXPANSION
One of the financial system's most proficient segments is the stock market, which also contributes significantly to economic growth. The stock market is a hub where investors can buy and sell shares, bonds, and other securities, among other securities. Stated differently, the stock market serves as an open platform for trading a wide range of assets and derivatives. Without a doubt, stock markets play a crucial and essential role in a nation's economy. However, the effect that stock markets have on the national economy may differ from the effects that stock markets have on the economies of other nations. This is due to the fact that the way stock exchanges are set up, how they interact with other parts of the financial system, how the nation is governed, and other factors all affect how the stock market affects the economy. Both short- and long-term economic growth are positively correlated with efficient stock markets, according to the data, and there is evidence of an indirect transmission mechanism through the impact of stock market development on investment. They are thought to be offering a service that stimulates economic expansion. The Indian capital market system has experienced substantial institutional changes throughout time, leading to a decrease in transaction costs and notable enhancements in efficiency, transparency, and safety. The economy has developed as a result of all these changes thanks to the stock markets. Similarly, a strong need for stock market development is anticipated to result from economic expansion driven by innovations in products and services as well as technical advancements.
Institutions
- Ahmedabad University (IN)
Publication Details
- Journal
- Zenodo (CERN European Organization for Nuclear Research)
- Published
- 2025-03-01
- DOI
- https://doi.org/10.5281/zenodo.17876223
- Primary Topic
- Banking Sector Performance and Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00