The Egyptian Capital Market And The Stock Market

1. Introduction

"A stock market is a spot in which long term capital is raised by industry and trade, the administration and nearby powers and it is viewed as capital market. The cash gets from private investors, insurance agencies, annuity finances and banks and is generally masterminded by issuing houses and vendor banks. Stock market is a spot where the securities can be sold and acquired at a concurred cost. Stock exchanges are additionally a portion of the capital market which gives a market to the shares and credit that speak to the capital once it has been raised." (Rakesh H M, 2014) .

A stock market is a precise and formal market that comprises the establishment of the capital market; it is one of the subgroups of money related markets

The ESE was the fifth most active stock exchange worldwide prior to nationalization of industry and the adoption of central planning policies in the early 1950s. These policies led to a considerable reduction in stock exchange activity, and the market remained largely dormant throughout the 1980s. The ESE began operating again as a market for capital only in the 1990s, when market-oriented reforms brought financial institutions, operations and policies closer to internationally accepted principles and practices. These reforms increasingly recognized the development of equity markets and the financing of capital formation as key factors bearing upon the prospects for long-term growth”. (Mauro. M & Maged. S,

Literature review

Stock market is a business sector where stocks are purchased and sold. In an economy, other than assuming the part of a hotspot for financing investment, stock market likewise performs a capacity as a flagging instrument to managers with respect to investment choices, and an impetus for corporate administration. Be that as it may, stock market is best known for being the best channel for organization's capital raise. Investors are occupied with stock due to "long term growth of capital, dividends, profits, and a support against the inflationary disintegration of purchasing force.

The other element that makes stock markets more attractive than different sorts of investment is its liquidity. Many people invest in stocks because they need to be the proprietors of the firm, from which they advantage when the organization pays dividends or when stock costs increases. Be that as it may, numerous investors purchase stocks with the end goal of control over the organizations. (Luu, T B., 2014)

2.1 Attitudes, perception, and behavior of Investors toward stock