Barometer of the economy At the stock exchange, share prices rise and decreases depending, largely, on economic forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. A recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore, the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.
Barometer of the economy At the stock exchange, share prices rise and decreases depending largely, on economic forces Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. A recession, depression, or financial crisis could eventually lead to a stock market crash Therefore, the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.