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STOKE EXCHANGE

CONTENT

  1. Meaning of Stock Exchange
  2. Importance of Stock Exchange
  3. Functions of the Stock Exchange
  4. Organisational Set Up and Transactions at the Stock Exchange
  5. Officials of the Stock Exchange
  6. Stock Exchange Securities
  7. 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

  1. It provides yardstick for measuring performance of companies
  2. An avenue for raising capital: Companies and governments raise capital through stock exchange
  3. Employment Opportunities: It provides employment opportunities for brokers, jobbers, clerks etc.
  4. Provides information to investors: Foreign investors can obtain necessary information about the investment situation of a country
  5. Facilitates transfer of investments
  6. It is a market for investment: Stock exchange provides avenue for people to invest in any sector of the economy.

Lesson tags: Commerce Lesson Notes, Commerce Objective Questions, SS3 Commerce, SS3 Commerce Evaluation Questions, SS3 Commerce Evaluation Questions First Term, SS3 Commerce First Term, SS3 Commerce Objective Questions, SS3 Commerce Objective Questions First Term
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