Abstract

The main purpose of the research is to define mobilization of long-term financial resources in the stock market, to analyse the current situation and give some suggestions for improvement of investment. The author tries to research the impact of investment on the stock market because everyone knows long-term financial resources are very significant for the market and affect economic growth. The paper examines the current state of investment activity in the stock market in our republic and around the world, as well as the impact on the economy of this activity is investigated. The author investigates the impact of investment activity in the stock market on the economy and ways of correct use of investment activity. Indeed, investment is a long-term investment in various sectors of the economy for making profit. Investment – consists of financial means put into objects of entrepreneurship and other types of activity, as well as material and intellectual resources for the purpose of earning (profit) or social benefits. Despite its popularity and presence in the news, the stock market is just one of many potential places to invest your money. Investing in stocks is often risky, which draws attention to the huge gains and losses of some investors. If you manage the risks, you can take advantage of the stock market to secure your financial position and earn money.

Highlights

  • Mobilization of the resources can be either for short term or for long term

  • This is because confidence in the brand of the issuer, which has invested its shares in the stock market, can attract cheap financial resources from investors, which, in turn, will lead to the stock market turnover increase

  • Despite the number of problems in the stock market in Azerbaijan, the foreign investors and international organizations consider the Azerbaijani market as a prospective market in terms of capital investment, which is associated with a favourable investment condition in the country

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Summary

Introduction

Mobilization of the resources can be either for short term or for long term. The economy consists of a huge number of enterprises and individuals, requirements of all of them differ. In the long-term functioning market economies, the financing of investment projects of the company is mainly provided by internal financial resources, and primarily by depreciation. Equity markets are seen as a prerequisite for corporations to get access to capital they need for innovation, value creation and growth This is important in the aftermath of the financial crisis when national economies seek more long-term corporate investment. In developed economies, aging populations, growing interest in alternative investments, the move to defined-contribution pension schemes and new financial regulations are changing how money is invested These forces point to a pronounced rebalancing of global financial assets in the coming decade, with a smaller share in publicly listed equities (McKinsey Global Institute, 2011). Stockholders got a share certificate, which was referred to as a “security certificate”, confirming how much they owned

38 Latgale National economy research
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