Function And Purpose Of Stock Market
The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.
History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up coming economy. In fact, the stock market is often considered the primary indicator of a country’s economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison of central banks.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.
Impact of Global Recession on Indian Market
The recession in the US market and the global meltdown termed as Global recession have engulfed complete world ecomony with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market, recession in jobs availiability and companies following downsizaing in the existing available staff and cutting down of the perks and salary corrections. Globally the financial sector sacking the existing base of employees in high numbers in US the major example being CITI Group same still followed by others in hospitality industry Jet and Kingfisher Airlines too. The cut in salary for the pilots being 90 % can any one imagine such a huge cut in salary.
In the globalized market scenario, the impact of recession at one place/ indusrty/ sector perculate down to all the linked indusrty and this can be truly interpreated from the current market situation which is faced by the world since approx 2 month and still the situation is not in control inspite of various measures taken to fight back the recession in the market.The badly hit setor at present being the financial sector, and major issue being the “LIQUIDITY Crises” in the market.
In-spite of the various measures to subsidise the impact of the recession and cut down the inflation present nothing really sound have been done.
Top 10 richest Kings or Queens in the world (1)
You mast know the richest person in the world. However, do you know who is the richest king or queen in the world? We did a research.
1. Fahd of Saudi Arabia: 25,000,000,000 euros
King Fahad bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques, (16 March 1921 – 1 August 2005) was the King of the Kingdom of Saudi Arabia, Head of the House of Saud as well as Prime Minister. One of forty-five sons of Saudi founder Ibn Saud, and the fourth of his five sons who have ruled the Kingdom (Saud, Faisal, Khalid, Fahad, and Abdullah), Fahd ascended to the throne on the death of his half-brother, King Khalid, on 13 June 1982. Fahad was appointed Crown Prince when Khalid succeeded their half-brother King Faisal, who was assassinated in 1975. Fahd was viewed as the de factoprime minister during King Khalid’s reign in part due to the latter’s ill health.
2. Hassanal Bolkiah: 13,000,000,000 euros