i really do not understand how the stock market helps in the economy of our country. it appears to me to be a gamble of sorts that the govt has allowed to flourish. can someone tell me whether i am right or wrong in layman's terms?
RE:stock market
by ajit reddy on Feb 21, 2008 12:11 PM Permalink
With the globalised economy it is very imperative as a developing country to attract foreign inflows for development process. The Stock Market as rightly said by doc_cent is an indicator of the country's economy and it helps the foreign players to choose from the many options. Even though the monitoring body, the SEBI, has many checks and restrictions for correct practices at the stock market the role of high handed business heads and politcal leaders cannot be ruled out. However the crashes on the stocks which we see very often these days is no indicator to this but mostly due to foreign market trends.
RE:stock market
by rana bose on Feb 21, 2008 04:34 PM Permalink
It substantially improves the government's revenue through Chidambaram Tax (Service tax and STT). Otherwise it is pure gambling and organised Satta
RE:stock market
by amarjitsingh on Feb 23, 2008 07:49 PM Permalink
you are right it legal satta!no good companies want to come with IPO such as LG , Phillips etc. , companies which issue IPO these days are asking for fancy Premium!and belive check all new IPOs such as DLF this company issued bonus to share holders before coming to IPO helping only management and then splittin shares to face value of 2 and charging premium of 500 . , no broker or expert will reveal the truthas they are only agent of these copmpanies! and companies which have future and good sharholding are always trying to delist from markets and use all tactics to achive the same! general share holder has to be very catuios while entering share markets!a whole sort of mafia which included tv channell experts , analysts to lure the investor with fancy and unreliable fancy datas and brokers are there to dupe genearl investor!so beware of experts and analysts !
RE:stock market
by LoudVoice on Feb 21, 2008 04:33 PM Permalink
Stock Market is not gamble. When you invest in IPO that goes directly to company. Company spends that amount for expansition. That amount goes to economy.You will invest in IPO only if you can make profit. So after IPO company start trading in secondary market.This way whole cycle works.
RE:stock market
by shishir agarwal on Feb 21, 2008 04:28 PM Permalink
Stock market is a place where entrepreneurs raise capital. Capital is required to create new businesses or to expand existing businesses. This in turn creates employment, a must for people like you and me, who are non-entrepreneurs.
Stock market is not a place to gamble although it appears like one. It is because of the people who do not pay regard to the fundamentals of any scrip before trading in it. The market is unfortunately driven more by sentiments rather than sane logic.
There is no fault of government as a well developed capital market is an absolute must for economic growth of the country. SEBI, the relevant government agency, has been doing an excellent job over the years. However, there have been a few scams here and there, and they were more driven by greed of the people. Who doesn%u2019t like quick bucks?!
RE:stock market
by doc_cent on Feb 21, 2008 11:01 AM Permalink
The stock market does not help in the economy of the country. It rather indicates the health of the country's economy.
