In the event of a stock market catastrophe, shareholders would lose part, if not all, of their money. It means businesses cannot earn investment funds for expansion.
- Businesses could subsequently experience lower profits as a result of customers' not having sufficient money to buy things, and they'll be forced to lay off employees.
- Developments in the share market typically affect all citizens of a particular country.
- If indeed the share market is doing well, people will put their money into it and buy more shares, which leads to greater job opportunities.
- since companies dealing in stocks will be able to hire additional workers.
- This also raises the amount of tax that the government will receive, allowing it to build more public buildings and pay its employees.
- So when the stock market is not performing well, it is the opposite.
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