What is the purpose of the stock market?
  • 5 years ago
The stock market is a real financing market! The offer is mainly the result of companies that will be looking for money to allow them to develop. They will therefore seek the help of other agents. The demand therefore comes from investors who are ready to raise funds. In this way, the company can quickly benefit from liquidity, without having to go through a bank. In return for this financial contribution, investors will hold shares in the company. They become "shareholders". As co-owners, they will receive a portion of the profits, called "dividends". But by allowing companies to grow, the stock exchange will also help to finance governments. These tax the income obtained through an initial public offering. It will also support the overall growth of the economy, in proportion to the growth of companies.
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