How does the stock market influence the finances of individuals

Best Answer: The value of a company on the stock market affects the financial stability of a company to some extent. A person working for a company whose value plummets might be out of a job. Conversely, a company whose value rises might higher more people.

The stock market affects the economy to a limited extent. The steep drop in the U. S. stock market in 2001 caused a recession in the U. S.