ABSTRACT

Structurally, the stock market consists of the stock exchanges, listed firms and shareholders; its function is to facilitate share trading. Intrinsically, the stock market creates links between participants in the economy. It provides channels to connect consumers and producers, savers and borrowers, managers and owners, sellers and buyers. Through these channels, the stock market plays a critical role in the capital resource allocation of a modem economy; a modem economy cannot function well in the absence of a stock market.