Preview

stock exchange

Satisfactory Essays
Open Document
Open Document
344 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
stock exchange
SERVICES OF THE STOCK EXCHANGES
1. SERVICES OF THE INVESTORS
Inventors in the country are important component of secondary market. In stock market stock exchange provides the following services to their investors:
Liquidity to their investment is ensured by enabling them to sell securities whenever they need liquid funds.
Information about the price of securities listed on the exchange through daily quotations.
Safety & security to the transactions entered into by the investors in the market.
Better price for securities through the sensitive & continuous operations.
Guidance to the investors regarding the choice of securities to be purchased. Wide market is provided to the listed securities with the help of large no. of brokers, investors & market makers.

2. SERVICE TO THE COMPANIES
Companies need capital which is raised from the public through public issues. The public issues are successful because of the services rendered by the stock exchanges. The securities issued by the stock market. Thus; the following services are rendered by the stock exchanges to the companies:
Wide market for the listed securities.
Enhance the goodwill and the reputation of the companies who have listed their securities with the exchange.
Facilitate fair pricing of the listed securities.
Provide better response from the investors for the public issues.
Facilities for selling securities quickly & easily.
Maintaining the confidence of the investors in the capital market.

3. SERVICE TO THE COMMUNITY
The stock exchange plays a very important role in the country. It involves investors, companies, government and financial intermediaries. Therefore, it also provides the following valuable services to the economy or community:
It encourages the savings habit among the people in the country.
It helps to achieve capital formation and economic development.
It also helps to diversify investments in the profitable manner.
It provides the medium of evaluation regarding

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Fin370 Week Definitions

    • 487 Words
    • 2 Pages

    * Where new security are bought and sold into the financial market. Having a primary stock market allows companies to gain revenue and for investors to buy into a company.…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    * Stock - Represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business because it…

    • 618 Words
    • 3 Pages
    Good Essays
  • Better Essays

    has sold are simply being transferred from one investor to another. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public is liquidity(TItman, Keown, & Martin, 2014, P.25).…

    • 1479 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Fin/370 Week 1 Assignment

    • 636 Words
    • 3 Pages

    Stock is the subscribed capital of a corporation or limited liability company, usually divided into shares and represented by transferable certificates. The role of stock in finance is the contractual relationship between the companies and its stockholders or shareholders on the detail certificates set forth the division of the risk, income, and control of the business.…

    • 636 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    sasads

    • 17158 Words
    • 1 Page

    TitleQuiz Chapter 1StartedNovember 16, 2013 812 PMSubmittedNovember 16, 2013 819 PMTime spentHYPERLINK javascriptopenNewWindow(viewAttemptEventsLog.dowebctassmtAttemptId331676404011,ViewAccessLog,500,500) o View Access Log in a new window000724 Total score8/10 80 Total score adjusted by 0.0 Maximum possible score 10 1.Which of the following statements about dealer markets is true Student Response Value Correct Answer Feedback A. Closed-end funds are sold exclusively through this market. B. Rights and warrants can be bought and sold through this market. C. The volume of trading is far greater than the equities market. 100 D. This market uses a system where buyers and sellers enter competitive bids and offers simultaneously. General Feedback Almost all bonds and debentures are sold through the dealer market. These dealer markets are less visible than the auction markets for equities so many people are surprised to learn that the volume of trading on the dealer market for debt securities is several times larger than the equity market. Text reference Chapter 1 The Capital Market. Score 1/1 2.The Canadian securities industry is made up of 3 key elements that make its functioning possible. What are these 3 components Student Response Value Correct Answer Feedback A. Banks, pension funds and investment dealers. B. Banks, trust companies and insurance companies. C. Financial products, financial markets and financial intermediaries. 100 D. Federal, provincial and municipal regulators. General Feedback The three key elements in the securities industry are financial products, financial markets and financial intermediaries. Text reference Chapter 1 The Capital Market. Score 1/1 3.The government of a developing country has just announced a new program to nationalize all oil companies operating within their borders. How are investors interested in investing in this country likely to react Student Response Value Correct Answer…

    • 17158 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    The author of the book Monster is Walter Dean Myers.in this book the physical setting or state the character is in is depression,he feels alone as he spends his time in jail.he lets the readers know that time is moving on by the words he has used in the novel.…

    • 366 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Able to enjoy economies of scale by incurring lower transaction costs and commissions. Provide opportunities for small investors to invest in a liquid and diversified portfolio of financial securities.…

    • 1397 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Common Stock

    • 436 Words
    • 2 Pages

    Question 1.1. (TCO D) Which of the following statements concerning common stock and the investment banking process is NOT CORRECT?…

    • 436 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nasdaq Case

    • 803 Words
    • 4 Pages

    2) They act as dealers by buying and selling stocks for their own accounts to maintain an orderly market and provide liquidity to the market if there is an inadequate order flow.…

    • 803 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Asic Criticism

    • 2399 Words
    • 10 Pages

    “Much of the criticism directed at ASIC comes from elements within the corporate sector which have a vested interest in undermining ASIC’s role. Without ASIC, the Australian corporate scene would have a far lower standard of management and directors, and accordingly the corporate sector’s status within, and contribution to, the Australian economy would be inferior, to say the least.”…

    • 2399 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Project on Demat Account

    • 2645 Words
    • 11 Pages

    Indian capital market has seen unprecedented boom in its activity in the last 15 years in terms of number of stock exchanges, listed companies, trade volumes, market intermediaries, investor population, etc. However, this surge in activity has brought with it numerous problems that threaten the very survival of the capital markets in the long run, most…

    • 2645 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Today, if one wants to invest in stock market, he has to contact broker on phone or meet him personally to place order. A broker gives importance and additional service to all kinds of…

    • 5208 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    I would like to express my sincere gratitude to the management of SHCIL for giving opportunity to undergo this summer training project in esteemed organization.…

    • 891 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    * According to Husband and Dockerary "Stock exchanges are privately organized markets which are used to facilitate trading in securities.…

    • 2487 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Role of Sebi

    • 1119 Words
    • 5 Pages

    In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both development & regulation of the market, and independent powers have been set up. Paradoxically this is a positive outcome of the Securities Scam of 1990-91.…

    • 1119 Words
    • 5 Pages
    Good Essays