The Stock Market And Stock Exchange

1500 Words6 Pages
paper will encompass the importance of the U.S stock market/stock exchange versus the Chinese stock market/ stock exchange, with a brief introduction about how each stock market/stock exchange came into existence, the importance of each stock market/stock exchange, how the U.S and Chinese manage their stock markets/stock exchange, how corporations are appointed plus the rules and regulations. This will also entail random facts about each stock market/stock exchange. Stock markets are like hitting a royal flush, if the price of your stocks goes up, you win; if it drops, you lose! The stock market, also known as the equity market, is one in which shares are owned by companies and their shareholders. The companies that are on the stock…show more content…
They are basically the eyes and ears to their clients stocks. The stock market plays an important role in the growth of the industry, plus in the business/marketing of the country that can eventually affect the economy of the country as a whole. This is important because all companies rely on the stock market as a primary source to raise funds. Till this day the government and region banks keep a close look at the ups and downs of the stock market. The stock market is only important to the people that invest in it, meaning they invest their money in real estates, mutual fund or money market funds, purchased bonds and/or purchased shares of a company (usually traded publicity or OTC). If one does not invest in the stock market anything that affects this economy situation does nothing to them. Whenever companies need more money to open new business they either take out a financial loan or they have to present and issue their shares on the stock markets. Instead of a company raising capital for a business they can in-return issue shares because they have part ownership of the company. This is all considered to be the primary role of the stock market. The secondary role of the stock market is a market that plays an important role as the basic stool step for both, buyers and sellers to interact in exchange for shares. It is where investors go to buy and sell stocks that are to be traded on the market exchange. The United States Securities
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