Question

Explain the functions of stock exchange. Give some value points to it.

Answer 1

Answer:

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It provides a platform where shares can be sold and bought by buyers and sellers. Pricing of Securities:Based on the forces of demand & supply, Stock Exchange helps in putting a value on the securities which provide instant data to both buyers and sellers and thus helps in the pricing of securities.

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Answer 2

A stock exchange is often the most important component of a stock market.

Increasingly, stock exchanges are part of a global securities market. Stock exchanges also serve an economic function in providing liquidity to shareholders in providing an efficient means of disposing of shares.