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 Form 4 Business studies lessons and notes on international trade

Roles of stock exchange market

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Answer Text:
Roles of stock exchange market
They perform the following roles:
-They facilitate the buying of shares by creating a conducive environment for the investors who wants to buy shares.
-They facilitate the selling of shares by creating a ready market for those who wish to sell their shares
-They safeguard the investors’ interest by ensuring that the companies
to be listed have met a given standard of performance. If not they will be deregistered
-Provide useful information to the investors which is always timely and accurate to assist them in their decision making
-They create employment opportunity to those who facilitate the buying and selling of the shares such a jobbers, brokers, etc
-They help the government in raising the revenues in terms of fees and rents to the government
-They avail variety of securities for the investors to choose from before investing.
-They measure the country’s economic progress through checking the performance of the stock, which may be an indicator of the economic performance.


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