Role of Securities Trading in the Economy

Research proposal

Table of Contents
Title – Role of securities trading in the economy............................................................................3
Chapter 1: Introduction................................................................................................................3
Chapter 2 : Literature review.......................................................................................................4
Chapter 3 : Research methodology..............................................................................................7
Chapter 4 : Conclusion................................................................................................................9
REFERENCES..............................................................................................................................11

Title – Role of securities trading in the economy
Chapter 1: Introduction
Securities are known as trade-able financial asset. Trading securities refers to the
investment which is made by the investor in the debt and equity which is being actively trade for
profit. In short, trading securities are known by stocks, bonds, equity and debt, which an
investor purchase and sale in order to earn profit. But securities can only get traded on the
recognized stock exchange. Securities hit the economy in a positive way, securities which is
trading in the economy has maximizes the savings of general public. Stock market is the first
and foremost way of raising capital from public and in result investors get higher return then the
usual current rate of interest which is available in the fixed deposits and other investment.
Trading of securities are the suitable way to invest the money as the securities are highly liquid
assets and gives better return. The main role of securities is that they are directly impacting the
economy and helping the government to reduce inflation as well. Investment in securities are the
best way to find money for those who are in need of money also for those who want to make
investment and want to gain higher return from the market.
Background of the study
Trading securities are important for the growth and development of the country and
economy as it one of the fastest moving investment where an investor can make money for short,
mid and long run. But the trading securities get impacted by the market prices and movements,
as market moves as per the demand and supply and the prices of market changes on daily basis
and the companies may know the fair value of its securities. The major securities which is traded
on the exchange is – Bonds, stocks, commodities, currency etc. but securities can only get traded

on the exchange when it gets listed on stock exchange. The major exchange of UK is London
stock exchange. Due to securities all the investor whether they are retail and non – retail they can
invest their money for short run, and long run. The main aim of investors is capital appreciation.
Aim – To recognise the impact of securities trading in the economy
objective
 To develop understanding and knowledge about securities
 To identify the criticalness of securities in the Economy
 To analyse the constitution of traded securities in the economy
 To increase the channelization of money in the economy through securities
Research questions
 What is the role understanding and knowledge about securities?
 What is the criticalness of securities in the economy?
 What is the constitution of traded securities in the economy?
 What is the influence of channelizing the money via securities in the economy?
Rationale
The main reason behind selecting this topic is to assist the investor about the importance of
securities. To enhance the growth of economy by mobilising the fund from savers to buyers. To
identify the role securities and stock market in the economy. To know the importance of
securities in the economy. Another reason behind selecting this topic is that I have keen interest
in stock market and securities.
Chapter 2 : Literature review
To develop understanding and knowledge about securities
As per the Santiago, (2017) people do not have proper knowledge and understanding
about the securities and stock exchange, in result they may face huge loss because they invest in
wrong securities. So it is very necessary to enhance the knowledge and understanding about the
different types of securities. There are many securities which are traded on the stock exchange
and have different maturity period such as – short term, midterm and long term but it totally
depends of the needs of the investor , if they want to invest fo0r long run they may go for equity
and debt securities if the investors want to make investment for shorter duration they may go for
bonds and money market securities. But for that, investor must have proper knowledge about the
securities and market. In agreement with this, MacKenzie, (2017) states that by reading business