The primary economic role of financial markets is to

Question

Quizplus · Accepted Answer

The primary economic role of financial markets is to allocate resources to profitable businesses and away from businesses with losses. This is achieved through the buying and selling of stocks and other financial instruments, which channels investment towards companies that demonstrate growth potential and away from those that are struggling or failing. While investors may gain profits and dividends, these are secondary to the market's primary function of allocating resources efficiently.

The Primary Economic Role of Financial Markets Is to