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Essay / The Stock Market as a Securities Market in the United States
Table of ContentsIntroductionRole of the Stock MarketConclusionIntroductionStocks refer to groups of shares in a stock corporation. Usually, a company constitutes shares when all of its shares belonging to a particular class have been issued and fully paid for. The stock market is therefore “the market where the shares of listed companies are traded through buying and selling” (Morgan & Thomas, 1969). Unlisted companies cannot have their shares traded on the stock exchange. In addition, the stock market can also trade government securities and local government shares. The stock market plays a major role in the acquisition and trading of securities. This essay discusses the role of the stock market as a securities market primarily in the United States. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayRole of the Stock MarketThe stock market makes it easier to buy stocks. The market provides a conducive environment for investors interested in purchasing shares of various companies. Additionally, it protects the interests of investors. This is achieved by requiring companies seeking to be listed to achieve certain performance standards. The stock market also monitors the performance of already listed companies and those that do not meet expectations are delisted (Morgan and Thomas, 1969). Additionally, the United States government earns revenue by collecting fees and other contributions from activities conducted in the stock market. The market therefore constitutes a source of revenue for the State. Additionally, the performance of securities in the stock market can be used as an indicator of a country's economic progress. For example, a steady rise in the prices and volume of securities traded during a given period would indicate that the country's economy was growing positively at that time (Morgan and Thomas, 1969). Additionally, the U.S. stock market as a market for securities promotes a savings culture among U.S. citizens. The US stock market provides investors with the opportunity to channelize their excess funds. These people can serve as role models for other members of society who can imitate them, thus promoting a culture of savings (Morgan and Thomas, 1969). In most cases, the prices of goods and services are determined by the forces of supply and demand. The stock market is able to determine the equilibrium price of securities. This allows buyers and sellers of goods and services to set prices that are not abusive. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay Conclusion In conclusion, the stock market as a securities market is of great importance to the United States government. In addition to creating employment opportunities for its citizens, the market promotes a culture of savings and acts as a source of revenue for the government..