Abstract:
The following thesis discusses the Investors play a major role in defining the economic condition
of the country. If the economy has some positive number of growth factors then the stock market
would show an increase in the basis points. If we look at the Japanese stock exchange we would
find out the fact that the Japan is facing the problem of deflation, it is good in one sense that it
the prices are lower and the stock market generates real value to the firms resulting in financing
the worlds biggest corporations, Toyota and Honda.
Stock markets acts as a financial barometer of the economy. Rational investors want to invest in
any country or in its projects, he would first look at the economic position of the country as well
as the performance of the companies working in the country and this all can be recorded through
the stock markets. If the companies are doing well and earning profits, the stock market shows
even lower but a constant index. On the other hand, the up-beating index always shows a riskier
position.
