1. Continuous in addition to arrive at marketplace for securities
blogspot.com//search?q=what-is-stock-exchange-its-definitions">Stock exchange provides a arrive at in addition to continuous marketplace for purchase in addition to sale of securities. It provides arrive at outlet for buying in addition to selling of securities. Stock telephone commutation every bit good acts every bit 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 whatever time. Comparison of companies inwards the same manufacture is possible through stock telephone commutation quotations (i.e cost list).
3. Encourages majuscule 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 in addition to adventure taking amid the investing shape in addition to converts their savings into profitable blogspot.com//search?q=what-is-stock-exchange-its-definitions">investment. It acts every bit an musical instrument of majuscule formation. In addition, it every bit good acts every bit a channel for correct (safe in addition to profitable) investment.
4. Provides security in addition to security inwards dealings
Stock telephone commutation provides safety, security in addition to equity (justice) inwards dealings every bit transactions are conducted every bit per good defined rules in addition to regulations. The managing torso of the telephone commutation keeps command on the members. Fraudulent practices are every bit good checked effectively. Due to diverse rules in addition to regulations, stock telephone commutation functions every bit the custodian of funds of genuine investors.
5. Regulates companionship management
Listed companies bring to comply amongst rules in addition to regulations of concerned stock telephone commutation in addition to piece of work nether the vigilance (i.e supervision) of stock telephone commutation authorities.
6. Facilitates world borrowing
Stock telephone commutation serves every bit a platform for marketing Government securities. It enables regime to heighten world debt easily in addition to quickly.
7. Provides clearing identify facility
Stock telephone commutation provides a clearing identify facility to members. It settles the transactions amid the members chop-chop in addition to amongst ease. The members bring to pay or have solely the internet dues (balance amounts) because of the clearing identify facility.
8. Facilitates salubrious speculation
Healthy speculation, keeps the telephone commutation active. Normal speculation is non unsafe but provides to a greater extent than work concern to the exchange. However, excessive speculation is undesirable every bit it is unsafe to investors & the increment of corporate sector.
9. Serves every bit Economic Barometer
Stock telephone commutation indicates the dry reason of wellness of companies in addition to the national economy. It acts every bit 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.
