Syndicate
Governmental Economic Politics
The measures taken by the governmental organisms affect the quotations on the stock exchange markets while they favor or not to the investors.
Examples:
- Are positive for investments on the stock exchange market:
- Reduction of the types of interest or any measure alike.
- Measures that favor the obtaining of profits by part of the companies.
- Reduction of the tax rate over the profits obtained by the companies, due to the increasing of the dividends to distribute.
- Freedom in the dividend politics of the companies.
- Measures that bring a reduction of the inflation, as for example a reduction of the tax rate over the profits obtained by the companies, due to the increasing of the dividends to distribute.
- Freedom in the dividend politics of the companies.
- Measures that brings a reduction of the inflation as for example a reduction on the public debt.
- Liberalization of the foreign investments on the country.
- Privatization of public companies.
Are negative for investments on the stock exchange market:
- Increasing of the types of interests or any measure alike.
- Actions that reduce the possibility of obtaining profits by part of the companies.
- Increasing of the tax rate upon the profits of the companies, due that the possibilities to distribute dividend are reduced.
- Restrictions in the dividend politics of the companies
- Measures that bring a raise of the inflation, as is the case of an increasing of the public debt.
- Restrictions to foreign investments on the country
- Nationalization of public companies
Other Aspects That Have Influence in the Climate of the Stock Exchange Market: The evolution of the economic juncture. The beginnings of economic crisis are usually followed by the descents of the quotations while, when the crisis is starting to be overcome, the markets experiment important risings.
Note that when we talk about periods of crisis/boom all the elements mentioned before are present: effects on the inflation, types of interests, etc.
The general politic. The rising in power of political parties that favor the private investments will affect positively on the stock exchange markets, while the victory of political parties that are against private investments or the alarm of a possible war confrontation can make the quotations fall.