What Are The Functions Of The Stock Exchange?


19 Answers

Hassan Raza Profile
Hassan Raza answered
It is an open market for the buying and selling of financial assets. General public can take part in the sale and purchase of securities of different companies. Stock exchange provides information about the change in prices of various securities. It also provides information about the overall economic conditions of the country. Stock exchange works as an indicator of the economy. If the business in stock exchange market is going well, it shows that the economic conditions of the country are good and vice versa.

Stock exchange is a market where buyers and sellers of securities come together. Due to this stock exchange play the role of an intermediary. It provides the facility of speculation to the speculators. Speculation is a way by which demand and supplies of the securities are adjusted. It provides the facility of capital formation to the listed companies, because it is a place where the people come and invest their surplus funds.

If the management of a company wants to trade the share of the company in the stock exchange, they will have to fulfil the requirements for the listing of company. Stock exchange has indirect impact on the management of the company. Stock exchange protects the investors by ensuring the fair dealing for the sale and purchase of securities. The members of the stock exchange are bound to act within the limits set by the stock exchange.
Ankit Srivastava Profile
Stock exchange makes the movement of money into the system. People invest their savings through the purchase of securities for making profit and to beat the inflation. This makes a flow of fund in to the economy. Increase in the market capitalisation of the companies make them strong and help in the economic growth by providing employment and by increasing production etc. If the circulation of money will stop then the money will be plunged in the hands of the people, the growth will be stopped, so the Stock exchange are very important in any economy.
Anonymous Profile
Anonymous answered
The functions of stock exchange is to
jason bone Profile
jason bone answered
Stock exchange mainly work on the money factor if it's okay then running smooth otherwise it's not going well.
Haider Imtiaz Profile
Haider Imtiaz answered
Stock Exchange:
Stock exchange market refers to an organized market where govt. Securities and shares, bonds and debentures of the benefited trading units are regularly transacted. Its business is carried on with in a particular building in which a person can easily convert his shares into cash or new securities. Thus it is a market for the exchange of transfer able securities by providing a continuous market.

The term stock exchange is referred by some people to stat Market. Therefore some writer says, "It is a place to get rich quick while others regard as place of gambling.The securities of public companies can be transacted in the exchange only if they have been approved by the committee of the stock exchange.

A company desiring its shares to be approved must first satisfy very rigid rules concerning the prospectus. It must also agree to abide by the regulations of the stock exchange about any aspects of its conduct.

Some Features of Stock Exchange Market
1. Specialized market. Stock exchange is a specialized market for the purchase and sale of industrial and financial securities.
2. Rigid rules. There are large number of buyers and sellers who conduct their activities according to rigid rules.
3. Basis of formation. Its activities are controlled by the company ordinance in our country. It can be formed as company limited by guarantee or company limited by shares.
Anonymous Profile
Anonymous answered
To buy stocks and sell stocks and take the commission on each every transaction wheather they sell or whether they purchase they are the mediators
Hannah Moeller Profile
Hannah Moeller answered
It is about buying and selling different stocks!!
Rebeka Justin Profile
Rebeka Justin answered

Much obliged for A2A,

A portion of the essentials of stock contributing/Some components you ought to consider before making stock speculation are :

- Decide your goal of speculation. Speculation without goal resemble a working without base.

- Take into thought your accessible term for speculation, your danger limit, and some different elements like expenses, charges and charges of specialists, and so on.

- Hold for long haul. Try not to get alarm with business sector downs and don't put resources into fervor or in perspective of benefit when business sector is blasting. Economic situations are not going to stay for eternity.

- Do your own exploration before contributing. Gather data about organizations , its money related position, its feasible arrangements, any mergers or acquisitions, profit/return history and so forth.

- Try to peruse quality stuffs from sites for new market upgrades and read books for finding out about securities exchange.

Anonymous Profile
Anonymous answered
SE is market where securiies of companiesd, like shares and bounds are sold and purchased by genral public
elijah daniel Profile
elijah daniel answered
Stock exchange market is a market where stock,shares,gilt-edge,bond and other securities are bought and sold.before a company share can be quoted in a stock  exchange market,it must first go public, and must be registered by the registrar or companies before the security and exchange commission will approve it.some of its features are:1. They are member of the capital market.  2.they offer long term loan to individuals or companies 3.they serve as a yard stick for measuring the performance of company etc.
Anonymous Profile
Anonymous answered
Organize ready market
turning investment into cash
aid to capital formation
proper evaluation of securities
profitable use of capital
facilities for speculators
Anonymous Profile
Anonymous answered
Money makes money and then more money......
As the song said, 'Some of them want to abuse you, and some of them want to be abused'.
Anonymous Profile
Anonymous answered
The australian securities exchange operates the australian stock exchange and the Sydney future exchange and facilities trading in securities and derivatives such as shares, futures, option and warrants. Stock also provide market data. Eg share prices and related information including stock market announcement and market education

Answer Question