Purchase of shares of reliance company by the households in India is not be treated as Investment in the economy. Justify.

Dear Student

Investment in economics, refers to capital formation i.e. increase in the stock of capital of economy.
Purchase of shares of reliance company by the households in India will not be treated as investment in the economy because it will not lead to any capital formation in economy. There is only change of ownership of assets i.e. shares from one set of persons to another.


Regards

  • 0
What are you looking for?