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Share Market
Share
 It is a part or portion of a large amount which is
divided among a number of people contribute.
 It is one of the equal parts into which a companys
capital is divided, entitling the holder to a
proportion of the profits.
Share Market
 A market in which securities are bought & sold
 It is where buying & selling of share happens.
 Only Public Companies are traded in Share Market
 Hence, Share Market is a place where public companies shares are
traded.
Why Share Market is Important?
 Following are the importance's of Share Market:
 Source of Business Capital
 Promotes Investment.
 Source of Government funds.
 Influences economic Perception.
Sources of Business Capital
 It is the alternative of Lending.
 It allow companies to raise huge amount of funds from public and helps in expansion.
 As companies take loan theres pressure to pay principal & interest but share market reduces that
burden. Company can raise funds by selling its shares and give ownership to shareholders along with
dividend from profit.
 It helps in expansion of business.
Promotes Investment
 Government motivate individuals to do investment in various sectors like
 Hydropower
 Agriculture
 Real Estate
 Research & developments
 Hotels
 Hospitals etc.
 Individual investment in various sectors to earn good return.
Sources of Government Funds
 Stock markets provide a trading platform for governments too.
 Sometimes a local, state or national government may need more money to develop a community housing
estate, build a water treatment plant or initiate any other public projects.
 Instead of increasing taxes to raise the required revenue, it can issue bonds through the stock market.
 When investors buy these bonds, the government is able to raise the money it needs to launch various projects
that can ease the cost of living or even create jobs for locals.
 In the long run, this improves the economy.
Influences Economic Perception
 Countries whose stock markets are on the rise are considered to be emerging
economies, while those with established stock markets are rightfully
considered strong economies.
 These perceptions drive a number of economic activities, including foreign
investments. Emerging economies, for instance, are promising grounds for
both local and foreign investors to put their money.
Other Importance's are as
 Tax Income for Government.
 Foreign Direct Investments
 Monetary Mobilization.
 Banking Sectors Development
 Self Employment Opportunities
 National Development
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Share Market.pptx

  • 2. Share It is a part or portion of a large amount which is divided among a number of people contribute. It is one of the equal parts into which a companys capital is divided, entitling the holder to a proportion of the profits.
  • 3. Share Market A market in which securities are bought & sold It is where buying & selling of share happens. Only Public Companies are traded in Share Market Hence, Share Market is a place where public companies shares are traded.
  • 4. Why Share Market is Important? Following are the importance's of Share Market: Source of Business Capital Promotes Investment. Source of Government funds. Influences economic Perception.
  • 5. Sources of Business Capital It is the alternative of Lending. It allow companies to raise huge amount of funds from public and helps in expansion. As companies take loan theres pressure to pay principal & interest but share market reduces that burden. Company can raise funds by selling its shares and give ownership to shareholders along with dividend from profit. It helps in expansion of business.
  • 6. Promotes Investment Government motivate individuals to do investment in various sectors like Hydropower Agriculture Real Estate Research & developments Hotels Hospitals etc. Individual investment in various sectors to earn good return.
  • 7. Sources of Government Funds Stock markets provide a trading platform for governments too. Sometimes a local, state or national government may need more money to develop a community housing estate, build a water treatment plant or initiate any other public projects. Instead of increasing taxes to raise the required revenue, it can issue bonds through the stock market. When investors buy these bonds, the government is able to raise the money it needs to launch various projects that can ease the cost of living or even create jobs for locals. In the long run, this improves the economy.
  • 8. Influences Economic Perception Countries whose stock markets are on the rise are considered to be emerging economies, while those with established stock markets are rightfully considered strong economies. These perceptions drive a number of economic activities, including foreign investments. Emerging economies, for instance, are promising grounds for both local and foreign investors to put their money.
  • 9. Other Importance's are as Tax Income for Government. Foreign Direct Investments Monetary Mobilization. Banking Sectors Development Self Employment Opportunities National Development