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Stock markets and economic growth

Author Affiliations

  • 1Bhilai Mahila Mahavidyalaya, Bhilai, CG, India
  • 2Bhilai Mahila Mahavidyalaya, Bhilai, CG, India

Int. Res. J. Social Sci., Volume 7, Issue (6), Pages 30-33, June,14 (2018)


Capital market is the centre or arrangement that provides facilities for buying and selling of long-term financial claims. It is the market where transactions are made in long- term securities such as stocks and bonds. The participants of this market includes various financial institutions, mutual funds, agents, brokers, dealers and other borrowers and lenders of long-term debt and equity capital. Capital market is not a compact unit but consists of two major parts: Primary Market and Secondary market. The initial emergence of stock markets in the world can be traced back over hundreds of years to when industrialization and innovation took hold in Europe. The rapid economic growth in the past one hundred years gave rise to the explosive development of stock markets. At the same time the enhancement of stock markets has played an important role in promoting the growth of the world economy. The modern market economy depends to a greater extent on a sound operated stock market. Stock market provides liquidity to the financial instruments which are issued in the primary market.


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