The simple and straightforward answer to this one is…yes, it does. It affects consumer spending, which means folks don’t spend much as they should when things are wrong. On the other hand, consumers buy more if they have more money in their wallets. The stock market can seesaw between the two.
How, you ask? There are two main markets in the stock trade.
- Bull markets
- Bear markets
During the bull market, everything is fine. The share price is constant or rising and there is some money to spend. Consumers feel richer and are more prone to splash some cash out.
The bear market has the opposite effect. There is less spending and people are more likely to concentrate on the bare necessities. Fears of a recession are heightened and consumers have little money to spend. There is definitely no splashing out during this season.
To keep abreast with share price news, prudent investors and shareholders keep track of their investment. These are the people you will find going to livebunzi share prices or other investment platforms to check out how their companies are holding up.
Advantages of a Rising Stock Market
- Increases the value of the shares as a source of funding.
- Makes it possible and easier for a business to trade in shares and thus raise more funding.
- A business is able to use its stock as a bargaining chip to get competitors.
It is clear that share price affects individual business positively when the share price is good and negatively when it is on the decline.
- If you own a business that deals with consumables, you will feel the pinch if consumers are buying less.
- If you own a company either as an individual or as a shareholder and the share price is going down, you feel the pinch of being in the bear market. You could lose investors as they choose to invest in companies that are doing better than yours. The company is also in danger of losing employees as they may feel that job security is threatened.
Are you affected if you have no money in the share market?
- Whether you have bought shares or not, the negatives and positives of the stock market will affect you. You see, it affects bond market prices. This means that how much you pay for a mortgage is up for review. Whether or not you can get a loan and at what interest is also up for discussion. If that’s the way things are going to be, you might as well get yourself some shares and have some sort of say as well!
- On the bright side, companies that are doing well in the stock market are always; looking to expand, which means hiring more workers. That is job creation. You could land your dream job. On the flipside, those that are not doing so well might be compelled to cut down jobs and that, unfortunately, puts yours in jeopardy.
The long and short of it is that you need to follow up on live bunzi share price or more sites like this one to see how well the share price is doing not because you own a bunch of shares,but because even if you do not, you will be affected as an individual and as an employee when there are massive layoffs.