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What is the overall role/purpose of the stock market? How does the stock market affect the...

What is the overall role/purpose of the stock market? How does the stock market affect the    economy, investors, and corporations?

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Overall Purpose of the Stock Market
Stock markets provide businesses a venue for raising capital. They allocate capital effectively to businesses that make products and deliver services that customers need. They contribute to economic growth, provide protection to investors, protection to transactions, helps price securities, etc. For more details, visit: https://finance.zacks.com/purpose-stock-market-2365.html and http://www.yourarticlelibrary.com/economics/market/9-most-important-functions-of-stock-exchangesecondary-market/8766 among others.

Impact of Stock Market on the Economy
A stock exchange is a reliable barometer to measure the economic conditions of a country. Every major change in the economy is reflected in the prices of shares. The rise or fall in the share prices is indicative of the boom or recession cycle of the economy. It leads to capital formation and economic growth by facilitating investments and disinvestments, channling funds to productive purposes.

Impact of Stock Market on Investors
Stock markets facilitate a platform for investors to access real-time data on stock prices and other details of issuing companies. It provides a platform for investors to invest and disinvest easily. It protects the investors and provides security to transactions.

Impact of Stock Market on Companies
Stock markets provide companies with a platform to issue securities and to facilitate continuous transfer of securities. It helps in pricing the securities as well. It provides companies an easy access to capital. The penal provisions of the laws governing stock markets protect not only the investors but also the companies from unwarranted price manipulation, insider trading, etc.

Go through the links provided above too.

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