Equity market is often considered as the main engine driving the economy. It allows
saver to acquire stake in a firm, and sell it, if they need access to their savings
or if they want to alter their portfolio. At the same time, it allows firms to raise
permanent capital for asset creation.
Equity markets allow savers to acquire stake By incorporating information about
future earnings potential in current stock prices, the equity market also serves
as a barometer to the state of the economy. This makes the equity market an important
constituent of financial markets.