1. Continuous and install market for securities
armory supersede provides a ready and perpetual market for purchase and sale of securities. It provides ready going for purchase and selling of securities. Stock exchange as well as acts as an outlet/counter for the sale of listed securities.
2. Facilitates evaluation of securities
Stock exchange is efficacious for the evaluation of industrial securities. This enables investors to know the true worth of their holdings at any time. Comparison of companies in the same industry is likely through stock exchange quotations (i.e price list).
3. Encourages capital formation
Stock exchange accelerates the process of capital formation. It creates the habit of saving, investing and peril taking among the investing class and converts their savings into profitable investment. It acts as an instrument of capital formation. In addition, it also acts as a channel for right (safe and profitable) investment.
4. Provides safety and security in dealings
Stock exchange provides safety, security and equity (justice) in dealings as transactions are conducted as per well defined rules and regulations. The managing corpse of the exchange keeps control on the members. Fraudulent practices are also checked effectively.
Due to various rules and regulations, stock exchange functions as the custodian of funds of genuine investors.
5. Regulates company management
Listed companies have to succeed with rules and regulations of concerned stock exchange and work under the direction (i.e supervision) of stock exchange authorities.
6. Facilitates public borrowing
Stock exchange serves as a platform for marketing Government securities. It enables government to nobble public debt easily and promptly.
7. Provides clearing house facility
Stock exchange provides a clearing house facility to members. It settles the transactions among the members quickly and with ease. The members have to pay or...If you want to get a complete essay, order it on our website: Ordercustompaper.com
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