Stock prices are a central element in a market economy, because they ensure that investment resources flow
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Stock prices are a central element in a market economy, because they ensure that investment resources flow to their most profitable uses. When occasional bubbles and crashes distort stock prices, they can destabilize the economy.
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Stock prices play a crucial role in the functioning of a market economy by allocating capital to its most productive uses Here are some key reasons wh...View the full answer
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Related Book For 
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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