STOKE EXCHANGE
CONTENT
- Meaning of Stock Exchange
- Importance of Stock Exchange
- Functions of the Stock Exchange
- Organisational Set Up and Transactions at the Stock Exchange
- Officials of the Stock Exchange
- Stock Exchange Securities
- Capital Market: Meaning and Methods of Raising Funds
Meaning of Stock Exchange
Stock exchange is a specialized market for buying and selling of securities. These securities are shares and stock which represent ownership interests in businesses, debentures and government bonds. This is a market where those who are interested in purchase of securities are brought into contact with the sellers.
Importance of Stock Exchange
- It provides yardstick for measuring performance of companies
- An avenue for raising capital: Companies and governments raise capital through stock exchange
- Employment Opportunities: It provides employment opportunities for brokers, jobbers, clerks etc.
- Provides information to investors: Foreign investors can obtain necessary information about the investment situation of a country
- Facilitates transfer of investments
- It is a market for investment: Stock exchange provides avenue for people to invest in any sector of the economy.
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