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Rosie

Why is the share market of an economy called a 'barometer'?

Please answer it in 'economical terms' if possible...
Jack:

It is referred to as a "barometer" simply because it is an indication of the market pressures.

Globally Interested:

A barometer stock is a security whose price pattern is regarded as an indicator of the state of the overall market.

The stock market as a whole is said to be a barometer because it can be used to forecast the growth or slowdown in the economy.

Answer:
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