Functions of stock exchange market
Answer Text: ROLES OF THE STOCK EXCHANGE AS A MARKET FOR SECURITIES:-Facilitates buying of shares- it provides a conducive environment to investors who want to buy shares in different companies.-Facilitates selling of shares- it creates a marketfor those who wish to sell their shares.-Safeguarding investors’ interests- it monitors the performance of the already quoted companies and those found not meeting expectations are struck off. Companies who want to be quoted must also attain a certain standard of performance.-Provides useful information- it providestimely, accurate and reliable information to investors which enable them to make decisions on the investments to make. The information is passed on through mass media and stock brokers.-Assist companies to raise capital- it assists companies to raise capital by creating an environment through which companies issuenew shares to members of the public in an IPO.-Creation of employment- it creates employment for those who facilitate the buying and selling of shares e.g. stock brokers, stock agents etc.-Raising revenue for the government- the government earns revenue by collecting fees and other levies/ dues from activitiescarried out in the stock exchange market.
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