Vol. 2 • 2008
AUTHORS:
Lee Chin
Lee Weng Hong
INTRO:
The stock market is one of the most important sources for companies to raise money. This allows businesses to go public, or raise additional capital for expansion. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity,
and can influence or be an indicator of social mood. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Investors usually invest in share traded on the stock market because they want to earn a positive return on their investment. The returns to an investment in shares trade on the stock market usually come from two main sources- capital gains and dividends. It has often been said that short term investor or speculators are in the market for capital gain and long-term
investor for dividends.
FULL TEXT: FREE DOWNLOAD
0 comments:
Post a Comment