The stock markets are a core and essential part of any country’s economy. It is the barometer of current and future economic prospects in a macroeconomic scenario. The following are some of the important aspects of stock markets (Levine & Zervos, 1998):
- Capital for Companies – They help raise capital for companies to operate and grow. This is one of the core features where financial liquidity can be leveraged for new or existing companies for their financial needs.
- Wealth Creation – Stock Markets help investors to create personal wealth. There are many instances of small-time investors who are prudent and knowledgeable about stocks becoming millionaires and billionaires. One main aspect here is that there is a platform available for a common man to invest and earn. In recent times, once a startup company gets listed on the stock exchanges, the promoters, as well as the employees, have greatly benefited from the wealth creation enabled by stock markets.
- Liquidity in the Economy – The stock market is one of the levers of liquidity in the economy, with a large amount of transactions on a daily basis they help to circulate money very quickly and efficiently.
- Economic Barometer – The stock market can be safely considered as a barometer of the macroeconomic situation; the stock market trend gives ample idea about the current state of the economy and also gives indications about the future financial prospects. The policies of the country can be effectively controlled keeping in mind the status of the indications coming from the stock markets.
- Foreign Direct Investment (FDI) – The stock market also helps to attract large foreign capital inflows in the country and along with it the technology transfer with the FDI route (Chen, 2021).
- Growth of FinTech – Efficient regulation and functioning of stock markets results in the growth of many financial technology companies which help to invest and do business very efficiently and the benefits of this technology can be available to the common man to invest in the financial section and also reduce the fraudulent activities with this sector (Tuch, 2020).
For Citing this article:
- Patalay, S. (2021). Design and Development of A Financial Decision Support System For Stock Market Investors Using Artificial Intelligence and Machine Learning.