IndexIntroductionRole of the stock marketConclusionIntroductionStocks refer to groups of shares in a joint stock company. Usually, a company forms shares when all its shares belonging to a particular class have been issued and fully paid up. The stock market is therefore "the market in which shares of listed companies are traded through buying and selling" (Morgan & Thomas, 1969). Unlisted companies cannot list their shares on the stock market. Furthermore, the stock market can also deal in government bonds and shares of local authorities. The stock market plays an important role in the acquisition and transactions related to securities. This essay discusses the role of the stock market as a securities market predominantly in the United States. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayRole of the stock marketThe stock market facilitates the purchase of shares. The market offers a favorable environment for investors interested in purchasing shares of various companies. Furthermore, it protects the interests of investors. This is achieved by requiring companies that want to be listed to reach certain performance standards. The stock market also monitors the performance of companies already listed and those that do not meet expectations are canceled from the register (Morgan & Thomas, 1969). Additionally, the U.S. government earns revenue by collecting fees and other activities. quotas deriving from activities carried out on the stock market. The market therefore constitutes a source of revenue for the government. Furthermore, the performance of stocks on the stock market can be used as an indicator of a country's economic progress. For example, a steady increase in the prices and volume of securities traded over a given period would indicate that the country's economy was growing positively at that time (Morgan & Thomas, 1969). Furthermore, the US stock market as a market for securities promotes a saving culture of US citizens. The US stock market offers investors the opportunity to channel their excess funds. Such people can serve as role models for other members of society who might emulate them thereby promoting a culture of saving (Morgan & Thomas, 1969). In most cases, the prices of goods and services are determined by the forces of supply and demand. The stock market is able to determine the equilibrium price of securities. This allows both buyers and sellers of goods and services to set prices that are not exploitative. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Conclusion In conclusion, the stock market as a market for securities is of great importance to the US government. In addition to creating job opportunities for its citizens, the market promotes a culture of saving and serves as a source of public revenue.