1. Continuous together with gear upwards marketplace position for securities
blogspot.com//search?q=what-is-stock-exchange-its-definitions">Stock exchange provides a gear upwards together with continuous marketplace position for purchase together with sale of securities. It provides gear upwards outlet for buying together with selling of securities. Stock telephone commutation too acts equally an outlet/counter for the sale of listed securities.
2. Facilitates evaluation of securities
Stock telephone commutation is useful for the evaluation of industrial securities. This enables investors to know the truthful worth of their holdings at whatsoever time. Comparison of companies inwards the same manufacture is possible through stock telephone commutation quotations (i.e cost list).
3. Encourages uppercase formation
Stock telephone commutation accelerates the procedure of blogspot.com//search?q=what-is-stock-exchange-its-definitions">capital formation. It creates the habit of saving, investing together with adventure taking amid the investing degree together with converts their savings into profitable blogspot.com//search?q=what-is-stock-exchange-its-definitions">investment. It acts equally an musical instrument of uppercase formation. In addition, it too acts equally a channel for correct (safe together with profitable) investment.
4. Provides security together with security inwards dealings
Stock telephone commutation provides safety, security together with equity (justice) inwards dealings equally transactions are conducted equally per good defined rules together with regulations. The managing torso of the telephone commutation keeps command on the members. Fraudulent practices are too checked effectively. Due to diverse rules together with regulations, stock telephone commutation functions equally the custodian of funds of genuine investors.
5. Regulates fellowship management
Listed companies accept to comply alongside rules together with regulations of concerned stock telephone commutation together with piece of occupation nether the vigilance (i.e supervision) of stock telephone commutation authorities.
6. Facilitates world borrowing
Stock telephone commutation serves equally a platform for marketing Government securities. It enables authorities to heighten world debt easily together with quickly.
7. Provides clearing menage facility
Stock telephone commutation provides a clearing menage facility to members. It settles the transactions amid the members chop-chop together with alongside ease. The members accept to pay or have exclusively the internet dues (balance amounts) because of the clearing menage facility.
8. Facilitates salubrious speculation
Healthy speculation, keeps the telephone commutation active. Normal speculation is non unsafe but provides to a greater extent than describe organisation to the exchange. However, excessive speculation is undesirable equally it is unsafe to investors & the increase of corporate sector.
9. Serves equally Economic Barometer
Stock telephone commutation indicates the Earth of wellness of companies together with the national economy. It acts equally a barometer of the economical province of affairs / conditions.
10. Facilitates Bank Lending
Banks easily know the prices of quoted securities. They offering loans to customers against corporate securities. This gives convenience to the owners of securities.
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