Question

Explain in brief the part played by stock exchange in Financial matters of business.

Answer 1

A stock exchange, securities exchange or bourse,[note 1] is a facility where stock brokersand traders can buy and sell securities, such as shares of stock and bonds and other financial instruments. Stock exchanges may also provide for facilities the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.

Answer 2

Stock Exchange:

• The function of a stock exchange in a market is to optimize savings return, which could otherwise be languishing in low income stagnant bank accounts.
• In an economy, the function of a stock exchange is to optimize savings return, which would otherwise languish in low-yield stagnant bank accounts.
• Investors obtain certainty, range of prospects and stability in addition, pledge and often achieve greater profits.
• Stock exchange plays a fundamental role in the operation of the economy by supplying the core for the economic infrastructure of a modern nation.
• Plus, exchange of stocks assist firms in raising funds to expand. They also enable people to invest in businesses.