The stock market plays a significant role in the health of the economy & is one of the most important source for companies to raise money. Experience has shown that the price of shares & other assets is an important part of the dynamics of economic growth. Rising share prices, for instance, tend to be associated with increased business investment & vice versa. Share prices also affect the wealth of households & their consumption. Therefore, central banks tend to keep an eye on the control & behavior of the stock market and, in general, on the smooth operation of financial system functions. The stock market appears in the news every day. You hear about it any time it reaches a new high or a new low, & you also hear about it daily in statements like "The Sensex rose 3% today ..." Obviously, stocks & the stock market are important. Just as it is important that networks for transport, electricity & telecommunications function properly, so it is equally essential that payments can be transacted, capital can be saved & channeled to the most profitable investment projects & that both hous......

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