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Role of Stock Exchange Market Economic

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Role of Stock Exchange Market Economic

Question

Outline the role of the stock exchange market in the economy.

Answer

- Provides a ready market for people wishing to buy/sell shares
- Keeps our eye on the financial affairs of the company
- Stock exchange index is used as a barometer of the country economic progress
- Makes it possible for investors to sell their shares when they find a more lucrative investment
- Directs a large part of public savings into the economy