Question

In: Economics

How would the stock exchange co-operate with other associations/stockbrokers/ market makers and Stock Exchanges in other...

How would the stock exchange co-operate with other associations/stockbrokers/ market makers and Stock Exchanges in other countries, such that information is available to facilities for which it might likely be useful, to them or their clients

How would the exchange serve as a barometer of economic activity?

Solutions

Expert Solution

ANSWER:

GIVEN THAT:

A. THE EXCHANGE CO-OPERATE WITH OTHER ASSOCIATIONS:

1. Cooperation with other stock exchanges and brokers needs modernised technologies and implementation of Blockchain and Artificial intelligence backed algorithm which decentralises stock makret giving transparency, clarity, accessibility, and ethical compliances.

2. This helps investors understand trade fundamental and actively trade into wider array of stocks by widening stock maket and stakeholders.

B. THE EXCHANGE SERVE AS A BAROMETER OF ECONOMIC ACTIVITY:

1. This kind of exchange serves as barometer of economic activity as higher FII promote higher FDI and forex reserves for companies and nation respectively.

2. This leads to a privatisation anf globalisation and entry of foreign players and new age investment within the nation giving ubiquitous servuces and product in long run and boosting consumption bouquet for consumers.

3. This gives better accessibility and affordability and hence leads to economic growth.


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