Is expenditure on the purchase of shares of a new company included/excluded in national income?
Is expenditure on the purchase of shares of a new company included/excluded in national income?
Anurag Pathak Changed status to publish December 8, 2023
No,
The expenditure on the purchase of shares of a new company will not be included in the national income as such transactions are mere paper claims and do not lead to any value addition.
Explanation:-
The Sale of shares is merely an ownership transfer of financial assets.
It does not add to any current flow of goods and services in the economy.
Anurag Pathak Changed status to publish December 8, 2023
