THE STOCK MARKET

The stock market is the market in which shares of publicly held companies are issued and trades either through exchanges or over-the-counter markets

This is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.

EFFECTS OF THE STOCK MARKET

• Fall in wealth shares cause a chain reaction
• Investors lose money, and become hesistant to spend
• Falling into consumer spending

CONFIDENCE

• Fear of Weakness in the Stock Market
• This can make share prices in the economy
• Depends on shares within companies
• But falling share prices make it hard
• Companies have trouble with raising finances

STOCK MARKET CRASHES

ECONOMIC DOWNTURN

• Stock Market Crashes
• Discounts due to money earnings
• Future investments and earnings
• Unpredictable climate change

INFECTION IN THE MARKET

• Not because of Poor Economy
• Change in Market Sentiment
• Selling becomes increased
• Selling also starts to lack
• The domino effect

THE INFECTION SPREADS

• Many sellers, not enough buyers
• Pushing of prices
• Bankruptcy occurs for most
• Loss of businesses