Question

Explain the importance of a stock exchange from the viewpoint of society.

Answer 1

Answer:

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The stock market serves two very important purposes. The first is to provide capital. It is a measure of a company's liquidity and its ability to meet short-term obligations as well as fund operations of the business. The ideal position is to to companies that they can use to fund and expand their businesses.

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Answer 2

Explanation:

Stock exchanges have played an important role at the heart of the economy in helping companies raise capital for more than 200 years. ... The fundamental purpose of stock exchanges is capital formation and intermediation: they provide a central marketplace to help companies raise capital from investors who have it.