Stock exchanges work for the growth of the Indian economy.

Question

Justify the following statement.

Stock exchanges work for the growth of the Indian economy.

Answer 1

• The stock exchange is a specific place where the trading of securities is arranged in an organized method.
• The stock exchanges help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization in India.
• It helps in raising medium-term capital as well as long-term capital for the development and expansion of the companies in the Indian economy.
• New industries and commercial enterprises can easily acquire capital funds for economic growth.
• It reflects a healthy financial and investment conducive atmosphere in the economy. It stimulates investment in the productive sector which accelerates the process of economic development of the nation.
• Thus, it is rightly said that the stock exchanges work for the growth of the Indian economy.