November 28, 2013 – The Decline and Fall of the Stock Market

Stock markets fulfill dual functions: they enable firms to raise capital by issuing shares to the public and at the same time allow institutions/individuals to invest and take part in the listed companies’ profits. In addition, they serve as a trading venue for the shares, thereby providing liquidity to shareholders. But in many countries, stock market listings are falling out of favor. What are the consequences of this trend for corporate investments and economic growth?