Economics
World Stock Markets
World stock markets refer to the global exchanges where stocks and other financial instruments are bought and sold. These markets provide a platform for companies to raise capital and for investors to buy and sell securities. Major world stock markets include the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange, and Tokyo Stock Exchange.
Written by Perlego with AI-assistance
Related key terms
1 of 5
5 Key excerpts on "World Stock Markets"
No longer available |Learn more- (Author)
- 2014(Publication Date)
- White Word Publications(Publisher)
________________________ WORLD TECHNOLOGIES ________________________ The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks. Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity.
No longer available |Learn more- (Author)
- 2014(Publication Date)
- Orange Apple(Publisher)
____________________ WORLD TECHNOLOGIES ____________________ Chapter- 7 Financial Market In economics, a financial market is a mechanism that allows people to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one place, thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate: • The raising of capital (in the capital markets) • The transfer of risk (in the derivatives markets) • International trade (in the currency markets) – and are used to match those who want capital to those who have it. Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends. In mathematical finance, the concept of a financial market is defined in terms of a continuous-time Brownian motion stochastic process. Definition In economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them. ____________________ WORLD TECHNOLOGIES ____________________ The term market is sometimes used for what are more strictly exchanges , organizations that facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange.
No longer available |Learn more- (Author)
- 2014(Publication Date)
- Orange Apple(Publisher)
____________________ WORLD TECHNOLOGIES ____________________ Chapter- 11 Financial Market In economics, a financial market is a mechanism that allows people to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one place, thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate: • The raising of capital (in the capital markets) • The transfer of risk (in the derivatives markets) • International trade (in the currency markets) – and are used to match those who want capital to those who have it. Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends. In mathematical finance, the concept of a financial market is defined in terms of a continuous-time Brownian motion stochastic process. Definition In economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them. ____________________ WORLD TECHNOLOGIES ____________________ The term market is sometimes used for what are more strictly exchanges , organizations that facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange.
eBook - PDFMoney, Markets, and Democracy
Politically Skewed Financial Markets and How to Fix Them
- George Bragues(Author)
- 2016(Publication Date)
- Palgrave Macmillan(Publisher)
119 © The Author(s) 2017 G. Bragues, Money, Markets, and Democracy, DOI 10.1057/978-1-137-56940-0_5 CHAPTER 5 When most people think of “the markets”, what immediately comes to mind is the trading of stocks. Indeed, nothing in the universe of invest- ment finance has a greater hold on the popular mind than the stock market. When local news reports cover business, it is always, if not solely, equities that they refer to in alerting us to the latest numbers on the Dow Jones and the Nasdaq (National Association of Securities Dealers Automated Quotation). The major US television networks specializing in business news—CNBC and Fox Business in particular—have their screens flowing with stock quotes. Even though newspapers no longer publish full tables of share prices, this data continues to feature prominently in business sec- tions. Newspapers continue to feature a list of the most actively traded stocks, a rundown of the biggest gainers and losers, as well as a sum- mary of the high, low, and closing levels of local company shares. On the Internet, where most people now go to look up quotes, this price action, along with the related stories, definitely stands out. To see this, one need only consult the home pages of popular financial sites like Google Finance, CNN Money, Yahoo Finance, TheStreet.Com, and MarketWatch. Other than perhaps real estate, stocks are the most discussed asset class at dinner parties and in everyday conversations. It is not hard to figure out why this is the case. Equity price movements stir two of the mightier passions of the human soul: hope and the love of gain. The stock market offers investors the chance of putting a relatively small amount of money into a company’s shares at the early stages of its The Stock Market growth trajectory and then watching that stake multiply into a huge for- tune as the firm’s profits leap exponentially. Take an investor who invested $10,000 in shares of Apple Inc.
eBook - ePub- David L. Western(Author)
- 2004(Publication Date)
- Taylor & Francis(Publisher)
What may be true of percentage changes in World Stock Markets—following the US lead—is not true of levels. European and Asian stock markets can underperform for several years due to a whole host of domestic factors including interest rate structures, inflation rates, productivity, capital flows, dollar strength, etc. There are stock cycles—the United States versus the rest—whereby global investors substitute out of US markets and into other prospective markets— driven in part by currency realignments. Therefore, previously underperforming markets can catchup and register annual percentage gains above that of their US counterpart.In the current period of 2004 the safe haven status of US stocks and bonds— relative to the rest of the world—has lost some of its ‘safety’ because of the slide in the US dollar. Although World Stock Markets move in tandem with US stock markets they do not move in perfect unison. Global investors are sensitive to relative interest rates, rates of return and exchange rate fluctuations. Just as major stock markets do not move in unison (at least in percentage terms) neither do major economies. As discussed earlier, Japan has been trapped in recession for many years and Germany experienced a serious downturn itself—while the US economy roared along for eight straight years. This lack of synchronization of major economy growth rates has been a key driving force of US stock prices. However, as the OECD converges on a more common growth rate so will global investors substitute out of US assets and diversify into other major economy stock markets. Hence, US stock markets may only provide a general lead for other stock markets to follow.Given that World Stock Markets move in tandem and are partially integrated, it then follows that policy coordination—both monetary and fiscal—by the G8 nations becomes essential. How can interest rates differ widely between nations and regions? How can the availability of credit be loose in some regions and not others? How can money supply growth be explosive in some regions and not others? How can one region indulge in an expansionary fiscal policy and another major region ‘watch’—or remain fiscal policy neutral? There are significant implications for exports, inflation and the respective current account deficits of these nations.If a world recovery is to take place then we can do without ‘beggar thy neighbour’ devaluation strategies or free riders exploiting the policy expansion of others. Perhaps the US economy has pulled along world economic growth for long enough and now the time has come for a more synchronized world expansion? A more broad based expansion will favour higher stock prices in other major countries such as Japan, China, Korea, Australia, South Africa and Europe.
Index pages curate the most relevant extracts from our library of academic textbooks. They’ve been created using an in-house natural language model (NLM), each adding context and meaning to key research topics.
