The economic indicators of a country are reflected in its stock markets. The volume of transactions carried out in the stock markets tells a lot about the growth scenario or otherwise of an economy. It is a barometer that indicates the present economic situation or the direction an economy is likely to take, that is, towards boom or recession. Even if the stock markets show a temporary buoyancy contrary to the real economic story of a nation, they correct themselves with time. Examples can be cited of the stock markets in US and Europe, which did show a boom even when the real economy was in a tailspin due to the sub prime mortgage crisis. However, no sooner the newshounds broke the story of the crisis, the stock markets went south.
However, notwithstanding the corrections that stock markets of US and Europe had undergone in the recent past, there is no denying their role in shaping the economic landscape of these nations. The mere mention of the New York Stock Exchange and its indices like NASDAQ, the London Stock Exchange, the European Stock Exchange, the Chinese or Japanese Stock Exchange conjures up images of the economic powerhouses of the world.
The Georgian Stock Exchange:-
The Georgian stock exchange came into being as a result of the funding it received from USAID and the Barents group. Soon after its formation, many brokerage firms (42 in no) began to operate. It was only after the tightening of rules followed by the enactment of the law on Securities market that their numbers stabilized. This means, at present, the voluminous transactions carried out in the Georgian stock market are actually managed by a limited number of brokerage companies. Importantly, the stock market is regulated by the National Bank of Georgia.
The growing Stock Market of Georgia:-
As mentioned earlier, the stock markets reflect the economic performance of a nation to a large extent. Obliquely, it also means if the economy of a country does well the stock markets follow suit as well. This is where the Georgian Stock Market can be a good place to operate and invest as its economy follows a growth trajectory. The positive growth story has been confirmed by various surveys conducted by leading agencies like the World Bank, IMF etc.
Stepping into the Georgian Stock Market:-
Although companies and individuals operate in the Georgian stock market through the buying or selling of shares, equities, debentures etc., it is better to enter the sector by offering a slew of brokerage services. To make this happen, a company should obtain a brokerage license from the National Bank of Georgia. Once the license is secured, a firm can operate in three distinct areas: brokerage, forex and asset management. Since each of these domains offers additional opportunities to the companies, there could be no looking back as far as securing success is concerned. Moreover, the Georgian stock market deals with crypto currencies as well, which are quite a rage in the digital economy of the world.
The Georgian stock market provides an opportunity for investment companies to obtain a brokerage license and to do business in a number of domains. The positive growth forecasts further add to the allure.