The importance of the stock market

The role of a well-developed stock market is paramount for the proper functioning of any
economy.

The stock markets are the places where important business transactions are made and, of
course, you can trade with financial products through a "broker" or using virtual investment
platforms.

Apart from having a primary and secondary market, with the objective of providing
liquidity, the securities markets play a key role in the economy of the country in question.

Next, I will mention some of the main benefits of having a well-developed stock market.
One of the multiple benefits is the opportunity it offers to different businesses to carry out
capital increases, either through fixed or variable income instruments.

They also help channel the savings of the general public towards investments made in the
different productive sectors of the country, benefiting both the macroeconomy and the
individual investor.

The monetary authorities that supervise and regulate the stock market are very strict in
terms of corporate governance that should have open capital companies, so the latter
implies that they usually have a management many times more effective than those of
companies private.

The government can be financed through the stock market to invest in infrastructure and
other projects that contribute to the progress of any nation. The capital markets are a
barometer that give us a very approximate idea of ​how the economy of any country is
going.
It is crucial to encourage foreign investment in the local stock market, as this would
increase the incoming capital and diversify the portfolio of international investors.

QUESTIONS

1. Make a reasoned conclusion according to the previous text.

Based on the text, it is evident that a well developed stock market holds significant
importance for the proper functioning of an economy. Stock markets serve as platforms
where essential business transactions take place, enabling trading of various financial
products through brokers and virtual investment platforms. Stock markets contribute to the
economy by allowing businesses to raise capital through various instruments. The same
way, governments can utilize the stock market to raise funds for infrastructure projects and
other initiatives that contribute to national progress. In conclusion the text clearly outlines
the multifaceted advantages of a well developed stock market for an economy. From
facilitating capital formation and efficient resource allocation to serving as an economic
indicator and supporting government initiatives.

2. Of the concepts analyzed during the module of capital market fundamentals, which
considers that they are those that have greater application in their labor and personal
practices? Argue your answer.

In my opinion, within the concepts addressed during the study module, those that I find
most relevant for their application in work and personal environments are those related to
the national stock market, the companies listed on said market, the significance of the price
of the stock as an indicator of corporate financial health, as well as fundamental and
technical analysis. These concepts are relevant in both work and personal settings because
they provide the tools needed to make informed financial decisions and to better understand
how markets, businesses, and investments work. Understanding these issues can have a
positive impact on financial decision making and resource management, both professional
and personally.
3. Look for a Financial News in English, that you think that could affect the Global
Economy, and answer:
    a. What is the news about?

The news article discusses a recent unexpected move by the bank of Japan (BOJ)
that has jolted the global market. During a policy meeting, the BOJ surprised the
markets by announcing a change to its policy of yield curve control. The central
bank raised the cap on ten year government bond yields, which it defends through
purchases, from 0.5% to 1%. This move resulted in a rise in ten year yields to
around 0.57% the highest in nearly ten years (The Bank of Japan Jolts Global
Markets, 2023).

    b. Write down a group conclusion about the topic of the News.

These are some conclusions of the news topic:

- The bank of Japan’s unexpected decision to raise the cap on ten year
government bond yields highlights the central bank’s willingness to adjust
its long standing ultra low interest rate regime.
- The decision has resonated in global markets due to its departure from
Japan’s traditional monetary policy approach and its potential implications
for interest rates worldwide.
- The article underscores that this move by the BOJ is part of a broader trend
of central banks responding to changing economic conditions and
inflationary pressures across the globe.

4. Search and write down, the five most important stock markets in the world and
indicate:

a. Top Ten Stocks (Companies) (10 of the Best Stocks to Buy for 2023 | Investing |
U.S. News, 2023) and location:
The five most important stock markets in the world are :

- New York Stock Exchange (NYSE) (NYSE Top Companies List by Market
Cap of July-2023, n.d.): Berkshire Hathaway, Omaha, Nebraska USA;
Taiwan Semiconductor Manufacturing Company, Hsinchu, Taiwan; VISA,
Foster City, California, USA; UnitedHealth Group, Minnetonka, Minnesota,
USA; JP Morgan Chase & Co, New York City, USA; Johnson & Johnson,
Skillman, Newyersey, USA; Eli Lilly and company, Indianapolis, Indiana,
USA; Walmart, Bentonville, Arkansas, USA; Exxon Mobil Corporation,
Texas, USA; MarterCard, New York, USA.
- Nasdaq Stock Market (Frankel, n.d.): Apple, California, USA; Microsoft,
Washington, USA; Amazon, London, England; Nvidia, Tokyo, Japan; Tesla,
Texas, USA; Meta, California, USA; Broadcom, California, USA; Pepsi Co,
New york, USA; AstraZeneca, Delaware, USA; Adobe, Mexico city,
Mexico.
- Tokyo Stock Exchange (TSE) (Tokyo Top Companies List by Market Cap
July-2023, n.d.): Toyota Motor Corporation, Toyota city, Japan; SONY
Corporation, Minato, Tokyo, Japan; Keyence Corporation, Kansas, USA;
Nippon Telegraph & Telephone Corporation, Tokyo, Japan; NTT Docomo,
Chiyoda, Japan; Mitsubishi Tokyo, Japan; Fast Retailing, Yamaguchi, Japan;
SoftBank Group, Minato, Tokyo, Japan; Tokyo Electron Limited, Minato,
Tokyo, Japan.
- Shanghai Stock Exchange SSE) (Shanghai Stock Exchange, n.d.):
Kweichow Moutai, China; Industrial and Commercial Bank of China,
China; Agricultural Bank of China, China; China life, China; Ping An
Insurance, China; Petro China, China; Bank of China, China; Haitian
Flavouring & Food, China; Hengrui Medicine, China.
- London Stock Exchange (LSE) (LSE Top Companies List by Market Cap of
July-30-2023, n.d.): Toyota Motor Corporation, Tokyo, Japan; AstraZeneca,
Delaware, USA; Shell PLC, London, England; HSBC Holdings, London,
England; BHP group, London, England; Total Energies SE, England; Boeing
 Company, Virginia, USA; Unilever Group, London, England; IBM,
Washington, USA; Honeywell International, North Carolina, USA.

References
The Bank of Japan jolts global markets. (2023, July 28). The Economist. Retrieved August
25, 2023, from
https://www.economist.com/finance-and-economics/2023/07/28/the-bank-of-japan-j
olts-global-markets
Frankel, M. (n.d.). What Is the Nasdaq Composite Index? The Motley Fool. Retrieved
August 25, 2023, from
https://www.fool.com/investing/stock-market/indexes/nasdaq/
LSE Top Companies List by Market Cap of July-30-2023. (n.d.). Value.Today. Retrieved
August 25, 2023, from https://www.value.today/stock-exchange-companies/lse
NYSE Top Companies List by Market Cap of July-2023. (n.d.). Value.Today. Retrieved
August 25, 2023, from https://www.value.today/stock-exchange-companies/nyse
Shanghai Stock Exchange. (n.d.). Wikipedia. Retrieved August 25, 2023, from
https://en.wikipedia.org/wiki/Shanghai_Stock_Exchange
10 of the Best Stocks to Buy for 2023 | Investing | U.S. News. (2023, August 14). US News
Money. Retrieved August 25, 2023, from
https://money.usnews.com/investing/stock-market-news/slideshows/best-stocks-to-b
uy-this-year
Tokyo Top Companies List by Market Cap July-2023. (n.d.). Value.Today. Retrieved August
25, 2023, from https://www.value.today/stock-exchange-companies/tse