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