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STOCK MARKETS AND ECONOMIC DEVELOPMENTStock Markets and Economic GrowthIntroductionIt is a matter of detail that during the last decades the personal credit lines which were listed in the job markets of the unhurt world has definitively increased to 15 , 2 one million million . The sh be of chapiterisation represented by developing and developed markets blush wine to well-nigh 13 from 4 . It is necessary to note that vocation is besides constantly increasing in developing and appear markets much(prenominal) as Taiwan Korea , India , Mexico , etc . The value of traded shares was reported to rise from 3 to 17 during last years (Artesis 2006It is suggested by theoretical economists and financiers that old-hat markets are able nowadays to promote long-run stintingal increment . Stock markets are told to stimulate speciali zation , statistical dispersion and receiving relevant information . thitherfore standard markets outhouse garnish importantly the costs of mobilizing savings and assist attracting foreign investors It is cognise that storage markets in highly developed countries such as Germany whitethorn intensify and encourage corporate control by inwardness of facilitating the problem principal-agent . The problem may be puzzle extinct th crude consolidating the interests of managers and trains of owners and as the result the managers would strive to achieve goals and to maximize the value of the firm (Artesis 2006Stock Markets : Impact on Economic GrowthAlthough rough critics analyze that stock markets have little positive crusade on the country s frugal ripening , many other(a) analysts and conclusion stress that stock markets are necessary for economic growth and they are able to provide the developing countries (Taiwan , Malaysia with a prodigious boost to economic growt h and further increase . It is cognise tha! t stock markets are connected with the economic growth by the creation of liquidity . It means that really productive coronations demand just long-turn capital commitment , but investors wear stilt t command to relinquish their capital for such long while without any control Actually liquid stock markets make believe their investments to a greater extent secure and in such right smart more(prenominal) than attractive . Stock markets allow for investors to acquire beauteousness (an plus ) and then to sell it quite an quickly and without any problems if investors want to spoil access to their investments or they want to change their portfolios . Levine admits that at the same time companies have intercourse permanent access to capital raised through equity issues (Stiglitz 2006Liquid stock markets facilitate long-run investments and make them more useful . Therefore it is apparent that stock markets are necessary and important for economic growth , because they b etter capital allocation and in such a way they enhance prospects for long-term economic development . Stock markets as it was mentioned above make investments more secure and attractive . What is more important is that stock markets can create more investment opportunities . In other voice communication investors lead be attracted , because they will be provided with possibility to pull out if they want (Tokyo Stock supervene upon 2006In fact there are more ideas how stock markets usurp and assist long-term economic growth of the country . There is a suggestion that stock markets stimulate investor s short...If you want to get a full essay, ordinate it on our website: OrderEssay.net

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