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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

Why aren’t stock purchases and sales counted in GDP?

To determine

Describe the reason for which the stock sales and purchase are not counted in GDP.

Explanation

Stock transactions are not counted in GDP, as it does not generate any production. If the stocks are purchased and sold, then the production will be zero, moreover it just represents the trading of current assets.

Example: Person JP sells his 10 shares of Company X’s stock to Person C...

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