close
test_template

Stock Market as a Market for Securities in The United States

download print

About this sample

About this sample

close

Words: 448 |

Page: 1|

3 min read

Published: Oct 31, 2018

Words: 448|Page: 1|3 min read

Published: Oct 31, 2018

Table of contents

  1. Introduction
  2. Role of the Stock Exchange Market
  3. Conclusion

Introduction

Stocks refer to groups of shares in a public limited company. Usually, a company forms stocks when all of its shares that belong to a particular category have been issued and fully paid for. The stock exchange market is therefore "the market where shares of quoted companies are exchanged through buying and selling" ( Morgan & Thomas, 1969). Companies that are not quoted cannot have their shares traded in the stock exchange market. In addition, the stock exchange market may also deal in government securities and stocks of local authorities. The stock exchange market plays a major role in the acquisition and dealings pertaining to securities. This essay discusses the role of the stock exchange market as a market for securities predominantly in the United States.

'Why Violent Video Games Shouldn't Be Banned'?

Role of the Stock Exchange Market

The stock exchange market facilitates the buying of shares. The market provides a conducive environment to investors interested in buying shares in various companies. In addition, it safeguards investors interests. This is achieved by requiring the companies that want to be quoted to attain certain standards of performance. The stock exchange market also monitors the performance of companies that are already quoted and those that are found not meeting the expectations are struck off of the register (Morgan & Thomas,1969).

Moreover, the United States government earns revenue by collecting fees and other dues from activities carried out in the stock exchange market. The market therefore forms a source of revenue for the government.Furthermore, the performance of securities in the stock exchange market may be used as an indicator of a country's economic progress. For example, a constant rise in prices and volume of securities traded in within a given period would indicate that the country's economy was positively growing at that time (Morgan & Thomas, 1969).

In addition, the United States stock exchange market as a market for securities promotes a saving culture of the US citizens. The stock exchange market of the US provides investors with an opportunity to channel their excess funds. Such people may act as role models to other members of the society who may emulate them hence promoting a saving culture (Morgan & Thomas, 1969).

In most cases, prices of goods and services are determined by the forces of demand and supply. The stock exchange market is capable of determining the equilibrium price of the securities. This enables both the buyers and sellers of goods and services to set prices that are not exploitative.

Get a custom paper now from our expert writers.

Conclusion

Conclusively, the stock exchange market as a market for securities is of great importance to the United States government. On top of creating employment opportunities for its citizens, the market promotes a saving culture, and acts as a source of government revenue.

Image of Prof. Linda Burke
This essay was reviewed by
Prof. Linda Burke

Cite this Essay

Stock Market as a Market for Securities in the United States. (2018, October 26). GradesFixer. Retrieved February 28, 2024, from https://gradesfixer.com/free-essay-examples/understanding-stock-market-and-its-major-role-as-a-market-for-securities-mainly-in-the-united-states/
“Stock Market as a Market for Securities in the United States.” GradesFixer, 26 Oct. 2018, gradesfixer.com/free-essay-examples/understanding-stock-market-and-its-major-role-as-a-market-for-securities-mainly-in-the-united-states/
Stock Market as a Market for Securities in the United States. [online]. Available at: <https://gradesfixer.com/free-essay-examples/understanding-stock-market-and-its-major-role-as-a-market-for-securities-mainly-in-the-united-states/> [Accessed 28 Feb. 2024].
Stock Market as a Market for Securities in the United States [Internet]. GradesFixer. 2018 Oct 26 [cited 2024 Feb 28]. Available from: https://gradesfixer.com/free-essay-examples/understanding-stock-market-and-its-major-role-as-a-market-for-securities-mainly-in-the-united-states/
copy
Keep in mind: This sample was shared by another student.
  • 450+ experts on 30 subjects ready to help
  • Custom essay delivered in as few as 3 hours
Write my essay

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

close

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.

    close

    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts

    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

    clock-banner-side

    Get Your
    Personalized Essay in 3 Hours or Less!

    exit-popup-close
    We can help you get a better grade and deliver your task on time!
    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now