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Role/Contribution of share market in industrial capital formation

Share markets are playing an important role in the formation of capital.  Enough capital is very important To keep open and dynamic of new and existing industries. This share market is playing a very important role in the Formation of industrial capital and Financing of the industrial sector. Some contributions of share market are described below:

  1. Supply of long term capital:

Share market helps to make long term capital for the industry. Through share purchasing – selling in the share market, collecting capital can fill up the demand of the industrial sector. Thus, the share market is playing a long term source for providing capital to the organization.

  1. Increased mobility of capital:

The share market helps to increase the mobility of the capital.  Every day, various types of shares are buying and selling in the share market especially in the secondary share market. as a result, the productivity and mobility of capital are increased.

  1. Inspired to make savings:

Share market-inspired people to make savings. The maximum number of people in our country is poor. Besides, there is no organizational form of making savings for the people. In that case, the share market helps people to make savings by providing an organizational form of savings.

  1. Inspired to make more investment:

The share market-inspired people to make more investment. People can all company’s share like buying products in the goods market. Again, people can get cash by selling this share at their willing. For that reason, people are inspired to invest in the share market. Thus, investment is increased in the country due to the share market.

  1. Helps to industrialization :

The share market is very important for industrialization. Selling share is the easiest way to finance Industries especially newly established industries.

  1. Helps to make capital:

Making capital is one of the major characteristics of the share market. Many people in our country can’t make savings due to having any organizational form of making savings. For this reason, people can’t use their savings in any productive sector. Share market helps to make capital by using these savings of investor

  1. Make the opportunity for a small investor:  

The share market is created as a special opportunity for investment for small investors in our country. There are some people who are willing to invest their savings. But in this present situation, it is quite difficult for small investors to make industry alone. That’s why, by Buying shares in the share market, investors can be a part of any kind of company. Thus, the share market helps small investors for investment.

Finally, we learn so many contributions to the share market.

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