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Does stock exchange promote economic growth?

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Answer:

Does having a business promote economic growth? Does business growth promote economic growth? Investing allows companies to earn capital needed to fund projects. When companies do so and are successful, they grow. This growth allows for more jobs and more money flowing. If an investor no longer wants to be invested in the company, it is more beneficial for them to allow someone else to buy their share from them than to have the company purchase it back (unless the company wants to decrease their outstanding shares) because then the company still has the cash on hand. So yes.

First answer by Krp10. Last edit by Krp10. Contributor trust: 2 [recommend contributor ]. Question popularity: 1 [recommend question].

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