A study on the world stock market gives comprehensive information on the various stock markets of the world. A stock market is typically a market where the trading of company stocks and derivatives is carried out. In order to be traded in the stock market, the securities need to be listed in the stock exchange.
The world stock markets are the main sources for the corporations, companies and governments to collect money. The corporations and governments issue their securities in the stock market thus going public and raising additional capital for their business or further development. The liquidity nature of the stock markets ensures the investors to sell their securities easily and quickly.
The world stock markets play an important part to control and regulate the course of international finance. It has been seen that the economic activity of a country is most importantly affected by the price of shares and other assets.
For example, the rising trend of shares may interpret that the business investment in the country is in the growing stage. The prices of the shares also invariably affect the household wealth. Hence, the central bank of each country makes it a point to keep an eye on the activities and behavior of the stock markets.
The stock markets also share the responsibility of carrying out the security transaction in a smooth way. The functioning of the world stock markets also construes the economic growth of a particular country. The world stock market is influenced by the trading of some of the major stock exchanges of the world like NASDAQ, NYSE Euronext, Bombay Stock Exchange and London Stock Exchange.
Last Updated on : 26th August 2013