1. Continuous in addition to develop marketplace for securities
Stock exchange provides a develop in addition to continuous marketplace for purchase in addition to sale of securities. It provides develop outlet for buying in addition to selling of securities. Stock telephone commutation likewise acts equally 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 whatsoever time. Comparison of companies inwards the same manufacture is possible through stock telephone commutation quotations (i.e cost list).
3. Encourages working capital alphabetic lineament formation
Stock telephone commutation accelerates the procedure of capital formation. It creates the habit of saving, investing in addition to adventure taking amid the investing class in addition to converts their savings into profitable investment. It acts equally an musical instrument of working capital alphabetic lineament formation. In addition, it likewise acts equally 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 equally transactions are conducted equally per good defined rules in addition to regulations. The managing trunk of the telephone commutation keeps command on the members. Fraudulent practices are likewise checked effectively. Due to diverse rules in addition to regulations, stock telephone commutation functions equally the custodian of funds of genuine investors.
5. Regulates fellowship management
Listed companies accept to comply amongst rules in addition to regulations of concerned stock telephone commutation in addition to piece of job nether the vigilance (i.e supervision) of stock telephone commutation authorities.
6. Facilitates world borrowing
Stock telephone commutation serves equally a platform for marketing Government securities. It enables regime to enhance 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 rapidly in addition to amongst ease. The members accept 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 concern to the exchange. However, excessive speculation is undesirable equally it is unsafe to investors & the increment of corporate sector.
9. Serves equally Economic Barometer
Stock telephone commutation indicates the Earth of wellness of companies in addition to the national economy. It acts equally 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.
