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The role of investment in free market?

Updated: 8/17/2019
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Q: The role of investment in free market?
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labor and investment


Is investment banking capitalism?

Investment banking is a form of capitalism yes. They ability to be involved in investment banking is a right dictated by are free market.


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Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?

Foreign Institutional Investors (FIIs) play a significant role in the Indian stock market, including the movement of the Sensex. Here's an overview of their role and their impact on market dynamics: Investment Inflows: FIIs are institutional investors from overseas who invest in Indian financial markets, including stocks. Their investment inflows can have a considerable impact on market liquidity and overall demand for Indian equities. Market Participation: FIIs are active participants in the stock market, buying and selling shares based on their investment strategies and market outlook. Their trading activities can influence stock prices and contribute to the overall market sentiment. Liquidity and Volume: FIIs often bring liquidity to the market due to the large capital they invest. Their participation can increase trading volumes, enhance market efficiency, and improve price discovery. Market Sentiment and Confidence: FIIs' investment decisions and actions can influence market sentiment and investor confidence. Positive or negative outlooks from FIIs may lead to increased or decreased investor participation, impacting market trends. Foreign Capital Flows: The entry or exit of FIIs' capital in the Indian stock market can affect the overall foreign capital inflows into the country. Changes in foreign investment trends can impact currency exchange rates and the balance of payments. Sensex Movement: The Sensex, a widely followed stock market index in India, represents the overall performance of the Indian stock market. FIIs' buying or selling activities, along with other domestic and international factors, can contribute to the movement of the Sensex.


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What is the role of mutual fund?

The role of a mutual fund is to provide avenues of investment for the normal investor who does not have the expertise or the time to have a direct investment in the stock marketbut at the same time wants to gain exposure to the stock market for its high return potential.


What overall vital role do price play in the free market?

Overall,the vital role prices play in the free market enables individuals and businesses to create, produce, transform, develop, innovate and compete in the marketplace.