Role of Stock Exchange in Encouraging Economic Growth
Explain how a stock exchange could encourage economic growth.
Macroeconomic Factors and Policies
STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW
- Definition of a stock exchange
- Importance of a stock exchange in raising finance for firms
II. The role of a stock exchange in enabling firms to invest and increase production
- How a stock exchange provides a market for shares
- The benefits of firms being able to invest in increasing their production
III. The impact of a stock exchange on firms' competitiveness
- How a stock exchange enables firms to merge and take advantage of economies of scale
- The benefits of reduced costs of production and increased international competitiveness
IV. The impact of a stock exchange on wealth and spending
- How a well-performing stock exchange can lead to higher dividends and increased spending
V. The role of a stock exchange in enabling the sales of government bonds and securities
- How money raised from the sales of government bonds and securities can be spent on infrastructure
- Recap of the importance of a stock exchange in the economy
- Final thoughts on the benefits of a well-functioning stock exchange.
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