Please help me im desperate I need the answer like now please What role does the stock market play in a market economy? It provides businesses with money for growth in exchange for shares of ownership. It provides the government with money in exchange for the ability to vote on upcoming bills. Stock markets generally do not exist in market economies. It provides individuals with loans which they can pay back at a later time with little to no interest.
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it helps generate the economy? .-.
Well, it doesn't provide the government with money in exchange for the ability to vote on bills -- that just doesn't make much sense. Congress does all of the voting, not businesses (though some might disagree with that). Market economies with certain businesses, such as corporations, usually participate in some kind of stock market if they issue public stock. Japan, China, the UK, and of course, the US, are among the countries that have their own stock exchanges for trading both local and worldwide shares of stock. So the only answer that fits is the first one -- It provides businesses with money for growth in exchange for shares of ownership. Anyone can buy a share of stock and that money goes to the company to whom it belongs. Whether it rises or falls, however, depends on how healthy that company is perceived to be.
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