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Question
Answer each of these questions in about one hundred and fifty words:
Explain the importance of Stock Exchange from the viewpoint of investors.
Solution
From the investor’s point of view:
- Dissemination of useful Information: It publishes useful information regarding price lists, quotations, etc., of securities through newspapers and journals.
- Ready Market: It will be easy way platform for all those for buying and selling shares and convert it into cash through a member of stock exchange.
- Investors’ Interests Protected: Stock exchanges formulate rules and regulations so that members may not exploit the investors.
- Genuine guidance about the securities listed.
- Barriers of distance removed.
- Knowledge of profit or loss on investments and ensures a measure of safety and fair dealings to the investors.
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