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Major Functions of the Stock Exchange in the Stock Market

by Prem K. Business & Marketing expert

The stock market provides complete security and safety in dealings as transactions area unit conducted as per well outlined rules and laws regulations. The market is an organized market, and government bonds, securities, shares and debentures generally sell and buy here. The stock market also tells not just to sellers or buyers but every individual that how good or bad health of the economy. Remember, if the shares or stock is getting more value in any stock market that means the country is running on the right track. The stock market is a very crucial component of each economy, and plays certain vital functions for the continuous development of the economy. Some of the major functions are given below:

It Facilitates Evaluation Of The Securities: The stock market is a very useful beneficial for the analysis of business securities, and this allows traders or investors to understand the real price of their securities at any point of time. Comparison among different companies but same industry is feasible by stock market quotation like a price list.

Emersion Of New Business Or Companies: Plays very significant role in the emergence of new companies. We know that companies who are listed in the stock exchange get more confidence from investors or traders. Therefore, attracting investment and raise the minimum subscription, it is really good to be in a safe and better position. Companies can start a new project in the presence of the stock exchange, and it also helps in raising finance for establishing new lines of production.

Development of Capital Market: The capital market is the market for securities like debt or equity, where both companies and governments can raise their long-term funds. The capital market has two sections, namely, non-securities market and exchange. The stock market is the premise of development of capital market, and active securities help in higher growth of the capital market. It also offers a medium, where various kinds of capital market instruments can be traced easily.

Generate The Habit Of Saving: It induces the general public to save and generates the habit of investment and parsimony among the people. The Stock Exchange teaches them to save first and then invest your savings in the right direction. For investing your money in a right way, you can take help of market experts, who provide best day trading tips, share tips, stock future tips and advices.

Several other major role of stock mare like Facilitate company or business growth, corporate governance, Barometer of the economy and creates investment opportunities for small investors.


About Prem K. Freshman   Business & Marketing expert

6 connections, 0 recommendations, 21 honor points.
Joined APSense since, June 4th, 2013, From Delhi, India.

Created on Dec 31st 1969 19:00. Viewed 0 times.

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