Question

State two limitations of stock exchanges.

Answer 1

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Stock exchanges can help companies become household names and better attract employers capable of making the company more profitable. Because of the increased access to capital, companies are also able to better compensate employees to keep them from moving to competitors

Answer 2

Explanation:

Disadvantages of Joint Stock Company are the following

Difficulty in Formation: ADVERTISEMENTS

Reckless Speculation Encouraged: This form of organisation encourages reckless speculation in shares at stock exchanges

Fraudulent Management

Delay in Decision-Making

Monopolistic Power

Excessive Regulation by Law

Conflict of Interests

Lack of Secrecy

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