Functions and Services of Stock Exchange
Followings functions are performed by Stock Exchange −
Anyone can sell and buy any industrial, financial, and Government securities. Stock Exchange is an organized ready market to do all this.
Liquidity is provided by the stock exchange. Investors and speculators can buy and sell their securities at any time.
Stock exchange provides collateral value to the securities that is helpful in borrowing from the bank on easy terms.
Capital for the industrial growth is provided by the stock exchange that is helpful for the investor to participate in the industrial development.
Price list and reports are prepared and published in the newspapers and broadcasted through the TV channels by stock exchange. It is helpful in knowing the true value of the investments. With the help of this, an investor or speculator can get to know the fair market value of his securities as per the latest market trend.
Listing of securities is encouraged by the stock exchange. Listing of securities means — “a permission to trade” that is given by the stock exchange only after fulfillment of the prescribed standards.
Listed companies have to provide the financial statements, reports, and other statements time to time to stock exchange — necessary for the maintaining the record and deciding the value of securities.
Thus, stock exchange works as the center of providing business information at one platform.