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What role does the stock market play in a market economy?

A. It provides businesses with money for growth in exchange for shares of ownership.

B. It provides the government with money in exchange for the ability to vote on upcoming bills.

C. Stock markets generally do not exist in market economies.

D. It provides individuals with loans which they can pay back at a later time with little to no interest.

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henrydesanta

Answer:

The answer is A. It provides businesses with money for growth in exchange for shares of ownership.

Explanation:

Share market plays a vital role in Market economies by playing a major role to assist corporations to raise funds to expand.

In Share Market, many types of financial instruments are traded. Commonly, they are Stocks and Bonds, Stock represents the equity capital that entails the Ownership of a company while corporate bonds represents debt capital (Its like a loan that a company takes from you for a specific period of time and then pays back to you with an interest.)

Answer:

A. It provides businesses with money for growth in exchange for shares of ownership.

Explanation:

Businesses and shareholders purchase stocks or small part of ownership of the company with money.

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