Financial Market Growth
Growth rate of financial market is uphill and plenty of investors are pouring in to the stock markets to reap rich dividends by initiating proper investments. The scores of the stock market indexes are rising and the corporate profits are also largely increasing. The investors are hardly interested about the intrinsics of the wide range of stocks offered,profitable returns attract more and more investors.
Financial service providers are assisting the potential investors to initiate the investments in an effective way. Financial market's growth promises high returns to the investors. The stock analysts also provide guidelines for positive stock trading.
According to investorwords.com, growth may be defined as ďAn investment style that looks for stocks with strong earnings and/or revenue growth or growth potential."
(http://www.investorwords.com/2258/growth.html) Financial market growth has considerable impact on economies. Financial market growth influence economic activities by the creation of liquidity. As a result,Gross Domestic Products significantly increase. Stock market investment involve high risk but the overall financial market's growth has bolstered the positive psyche of the investors. High returns from stock market investments have also created a positive impulse among the investors. Due to high foreign investments,index of many emerging financial markets are rising high. With the boom in financial markets,many of the stocks have become overvalued.
Market analysts are constantly monitoring the momentum of different stocks traded across various stock exchanges for maintaining accuracy in forecasting market trends.
Financial market growth is influenced by the following factors:
Liquidity of the financial market
Size of the financial/stock market
The regulatory development associated to the market
A comparative revenue figures of three quarters of the leading stock exchange of the globe (NASDAQ) provides a clear idea about financial market's growth :
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Soaring prices of the securities ,bonds and stocks are attracting global investors and this is highly nurturing the financial market's growth.