The impact of stock market on economic growth thesis

Dangers for global stability. Long-rundemand for money in Hong Kong: The value of the Canadian dollar Many Canadian companies sell products to buyers in other countries.

Africa, 9 22- King, J. The causality tests also confirm the positive effects of stock market development on economic growth.

Economic Factors That Affect the Stock Market

Many persons or organizations winded up their investment or business because of this crisis. An empirical study in Malaysia. Adeyemithe capital market is the aspect of the financial system which mobilizes and channels long term funds for economic development. Often happens when the supply of money or credit shrinks, or when consumers or government cut spending.

Investors follow this number closely as well. When inflation is at a low rate, the stock market responds with a surge in selling. The distribution of the wealth is also more equalitarian because the system does not discriminate between investors and the rate of return.

Journal of International Finance and Economics, 10 2 World development, 18 1 Ortrun Anne Gronski Languange: Economic Studies Journal, 25 3 The exchange was incorporated under the company ordinance as an associated company limited by guarantee and formed to promote commerce in Nigeria.

Economic Factors That Affect the Stock Market

Falling interest rates can stimulate economic growth. Secondly, in a liquid stock exchange, the opportunity for others to take over a company gives the management an incentive to maximize value for investors. People hold back on their spending, especially on nonessential items.

Stock exchange indexes are often used as an indicator of economic health. Journal of Applied Economic Sciences, 10 8 Procedia Economics and Finance, 15, When the price of the Canadian dollar falls, it makes it cheaper for others to buy our products.As you would expect, this measurement of a nation’s economic health has a huge effect on stock market returns.

Any significant change in GDP- up or down- usually has a significant effect on the. GDP growth is the growth in capital assets minus the depreciation + government savings for the year which is budget surplus plus bank reserves plus balance of payment surplus. This is the general rise in economic activity of the economy.

This is t. mobilizes and channels long term funds for economic growth. The stock market embraces trading in both new issues (primary) and old issues of stocks View all departmental Thesis/Dissertations Be the first to review “THE IMPACT OF STOCK MARKET PERFORMANCE ON THE GROWTH OF NIGERIAN ECONOMY” Cancel reply.

Factors that can affect stock prices.

How does the stock market affect gross domestic product (GDP)?

Many factors can cause the price of a stock to rise or fall – from specific news about a company’s earnings to a change in how investors feel about the stock market.

Economic trends in foreign markets can have an effect on the stock market in the United States, according to the article titled "Riding the Economic Roller Coaster" published in "Inc." magazine.

What Is a Stock and How Do Stocks Affect the Economy?

The primary function of any stock market is to play the role of supporting the growth of the industry and economy of the country and it is also the measurement tool that gives the idea about the industrial growth as well as the stability of the economy with their performance.

The impact of stock market on economic growth thesis
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