What Factors Can Influence the Stock Market?

09.12.2018

In this article, we will highlight features of economic relationships at the stock market as well as factors impacting the stock market.

Features of Economic Relationships at Stock Market

The stock market is one of the system elements of the finance market. Like other market types, it denotes the interaction of entities of economic affairs in the given area through the use of specific objects. Conducting activities at the securities market, entities strive to gain additional incomes from their monetary resources or a part of their funds, serving as objects of economic relations.

In other words, the share market is a totality of economic cooperation in terms of the emission and management of security papers.

A security paper, in its turn, acts as the main object of transactions and has an ambivalent structure. On one hand, a security paper is a commodity by itself with which deals are made. At another point, a security itself is not valuable – only the asset, assigned to this document, is valuable. Such an asset can be money or a part of a capital.

Equities market, as a component of a larger economic system, can influence the security papers by its activity, while it is also exposed to the influence of economic changes occurring in other economic systems.

Functionally, stock market fulfills the following tasks:

Securities market parties include:

Security papers can be issued by state authorities (federal, regional, and local power structures), companies limited (corporations), privately-owned enterprises, companies, foundations, etc.

Absolute and relative performance indicators are used to determine the parameters of market stability and development. These include the volume of capitalization and index rates of the stock activity.

Capitalization is a volume of securities circulating at the market.

A stock index is an average price fluctuation of a certain group of stock instruments. The stock index is the major indicator of the security market stability.

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