The Bombay stock exchange plays an important role in the global economy by acting as a backbone in the modern national economic structure. Stock exchanges allow companies to collect expansion funds. They also give people a chance to invest in businesses. Stock exchanges provide order and regulation in the application of stock trading. Finally, all corporations associated with stock exchanges presented thousands of job opportunities. Let’s focus on important of Bombay stock exchange.
Provide businesses with the ability to develop and expand
Stock exchanges provide companies with the means to give the necessary funds to grow their business. Whenever a company needs to come up with funds, it can offer shares to the public for sale. They acquire their shares by listing them on the stock exchange. Investors can buy publicly issued shares, and funds raised by investors can be used to expand the company’s business, acquire other companies, or recruit more employees. All of this contributes to business activities that continue to improve the economy.
Investment opportunity for people
Through stock trading, everyone can invest in the world’s largest businesses. Big and small investors use the stock exchange to buy futures offered by a company. For example, WOT ASIA provides a global market investment that takes the next phase of investment directly to the investment public. When there is no place to focus on trading stocks, it is difficult for the average citizen to invest. The willingness of ordinary citizens to invest in such businesses may be of additional benefit to investors. This increase in income leads to a rise in economic activity as investors spend their capital.
Investor class improved
Stock exchanges provide orders and guidance to the stock trading process. Without regulatory and shareholder protection, investors would be prepared to invest in stocks. Due to regulations on stock exchanges, more people are involved in investor ratings because the average person has the confidence to invest in stocks. Wealthy investors grow over time and can contribute even more to the economy.
Provide excellent job prospects and career opportunities
Each company involved in stock exchanges, including investment banks, brokerage firms, and financial news agencies, serves tens of thousands of men and women. Most of the work related to the stock market is very well paid and promises a great career. As a result, employees of these companies can promote economic activities.
Quick note: If the stock exchange does not adequately fulfill its duty to oversee the stock trading process, the investor public may soon challenge the fairness and security of the stock trading system. If this happens, all the economic activity generated by the stock exchange will decrease, resulting in a significant reduction in its overall economic activity. The stock exchange will ensure that investors are not exploited, and investors continue to trust and support the mechanism of the stock exchange.
It helps businesses raise capital by selling shares and corporate bonds. This allows ordinary investors to share in the financial successes of the company, earn profits through capital gains, and raise funds through dividends, while losses are also possible.