What is stock exchange?
Stock exchange is an organized market where government securities,
shared bonds and debentures of the trading units are regularly transacted. Stock
exchange provides a place to the buyers and sellers of the shares and securities.
Stock exchange indicates about the good or bad health of economy. If the share
prices are raising it means country is running on the path of development and
prosperity. If the shares are falling, it is a sign of downfall of the economy.
Importance of stock exchange market
1. Increase in capital formation
2. Provides market:
3. A barometer
4. Provides employment
5. Creates discipline
6. Increase in government fund
7. Improves the habit of saving
8. Economic development
9. Industrial development
10. facilitates the banking system
11. Equilibrium of demand and supply
12. Protection for investors
13. Price determination
14. Compensation fund
Will describe each point in description in next posts.
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