Thread by @CollenTap

Its the Financial Inclusion Thursday series

Forgive me for missing the last few weeks of the series it was quite hectic.

Today I will focus on the The role of the stock market in fostering economic growth.
#fintech
#dontbeleftout

Stock markets enable economic growth and development by bringing together those who need capital to innovate and grow, with those who have resources to invest. They do this within an environment that is regulated, secure and transparent.

Exchanges also seek to promote good corporate governance amongst their listed issuers, encouraging transparency, accountability and respect for the rights of shareholders and key stakeholders.

Despite playing a crucial role the link between exchanges and economic development is not widely-understood or appreciated.

Without stock markets, businesses would largely resort to borrowing huge loans which must be repaid with interests. Fortunately, businesses can issue shares to the public, raising vast amounts of patient capital that doesn’t come along with a repayment burden.

When businesses have access to such capital, they can easily expand their operations and create more job opportunities. From a national perspective, this will lower unemployment levels, and enable a government to earn move revenue from business taxes.

Stock markets provide a trading platform for governments too. Sometimes a local, state or national government may need more funds for 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.

For investors, stock markets are huge auction houses. Every day, investors are buying and selling their shares. This makes securities a liquid investment. When investors want to exit an investment, it is quick and easy to find a buyer.

Other assets are much more difficult to sell. If you invested in an investment property, it could take time to find a buyer and get your money out.

With securities, investors can find a buyer the very day. @CTRADEmobile comes handy for investors who wish to exit as they are given the option of exiting whenever they want to.

Given that the price of securities fluctuates up and down depending on the performance of the companies as well as other developments in the economy there is a real opportunity for investors to make a profit through buying and selling securities in the secondary market.

@CTRADEmobile further enables investors to keep in touch with their investments remotely so they can make quick decisions in certain market conditions which needs to be acted on urgently.

Outside capital growth, investors can also receive income from their investment in the form of a dividend. While not all securities offer dividends, there are those that do deliver periodical payments to investors.