performance a very high cost and then

performance of a Stock markets. How the returns are affected by these three things. Inflation is a very negative factor in any sector which creates unemployment in any country and decrease the value of the money. The supply and demand graph travel in an opposite direction. Every single person gets money very easily and the valuation of money goes down which badly effects the stock market returns. Supply of money and that of inflation both have a positive relationship with each other. These both have an impact on stock markets. When the demand or supply of money goes high then it creates inflation. . Use of high expected rate of return will decrease value of the firm and will result in lower share prices. Secondly, increase in Money Supply and Inflation increases future cash flow of the firm, which in turn, increases expected dividend, and will increase stock prices. For this reason, the relationship between Money Supply, Inflation and Stock Return need to be investigated. The high inflation can affect every single think in society. The firm buys the products in a very high cost and then by decrease and the no control of money they are serious trouble to sell their goods in an inflation rates. And the rate of interest also declines the returns of any stock markets. Basically the interest rate and the inflation have a close relation. If the interest rate are imposes high then the inflation are automatically gone high which affects the life of a common people and changes the mind of investors who change their decisions to invest in that country. Sometime inflation is benefit for any stock markets. The supply of goods goes high and the circulation of money and flow of currency also increases. Stock markets are the places where securities are exchanged and traded like (Bonds and stocks) etc. The stock markets play an important role in the boost of an economy of a country. In which the funds are transferred from investor to borrowers who necessary need this. And this exchanged channel is important and beneficial for the economy.Stock markets are financial places which provide the services to buy and sell like bonds and other securities like stocks. It also facilitates investors the old and not useful stock to sell. Stocks markets are basically two types of investors who have different approaches to change the conditions of stock prices. In which one of the approach tells that stock market is not enough market in which investors use their own techniques to gain the stock prices. And the second approach is that stock markets are perfect market and give equal chance and provide same information to all investors. In this the investors cannot fully compete the market prices but able to gain equal opportunity of

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