Stock Market Development in Qatar Economy Essay

Stock Market Development in Qatar Economy - Essay Example It is believed that inflation bears a positive influence on common stocks. This is so because the shareholders tend to earn more money for their goods and services when they sell them during the time when there is a high inflation rate in the market. This gives a positive relationship between an inflation and the stock market prices. When one, therefore, tries to assess the impact of inflation on the stock prices performance, there is a positive relationship which is achieved between the two. Economists measure economic growth in through the use of an increase in the size of the economy of a nation. Gross Domestic Product is a widely used measure of an economic output. The term is normally used to refer to the total value found from the final goods and services that are produced within a country’s borders within a given year. When measuring GDP, normally the ownership of a particular goods and services are not normally considered. The measure, however, considers the only the f inal goods and services that consumed by the final user but not those goods and services that were used as inputs in the production of other goods and services. Researchers have found out that there lies some relationship between the stock prices and the future growth of the real GDP. Two explanations exist to prove this fact, and the first explanation is the one that states that there are changes in information that might occur in the future about the RGGDP, and such changes in information can change today’s prices in the stock market.