What is listing of securities advantages and disadvantages?
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Advantages of Listing Securities
Listing offers advantages to both the investors as well as the companies. The following are the advantages of listing to investors:

Image: Listing of Securities – Advantages and Disadvantages
1. It provides liquidity to investments. Security holders can convert their securities into cash by selling them as and when they require.
2. Shares are traded in an open auction market where buyers and sellers meet. It enables an investor to get the best possible price for his securities.
3. Ease of entering into either buy or sell transactions.
4. Transactions are conducted in an open and transparent manner subject to a well defined code of conduct. Therefore investors are assured of fair dealings.
5. Listing safeguards investors interests. It is because listed companies have to provide clear and timely information to the stock exchanges regarding dividends, bonus shares, new issues of capital, plans for mergers, acquisitions, expansion or diversification of business. This enables investors to take informed decisions.
6. Listed securities enable investors to apply for loans by providing them as collateral security.
7. Investors are able to know the price changes through the price quotations provided by the stock exchanges in case of listed securities.
8. Listing of shares in stock exchanges provides investors facilities for transfer, registration of rights, fair and equitable allotment.
9. Share holders are provided due notice with regard to book closure dates, and they can take investment decisions accordingly.
Listing offers advantages to both the investors as well as the companies. The following are the advantages of listing to investors:

Image: Listing of Securities – Advantages and Disadvantages
1. It provides liquidity to investments. Security holders can convert their securities into cash by selling them as and when they require.
2. Shares are traded in an open auction market where buyers and sellers meet. It enables an investor to get the best possible price for his securities.
3. Ease of entering into either buy or sell transactions.
4. Transactions are conducted in an open and transparent manner subject to a well defined code of conduct. Therefore investors are assured of fair dealings.
5. Listing safeguards investors interests. It is because listed companies have to provide clear and timely information to the stock exchanges regarding dividends, bonus shares, new issues of capital, plans for mergers, acquisitions, expansion or diversification of business. This enables investors to take informed decisions.
6. Listed securities enable investors to apply for loans by providing them as collateral security.
7. Investors are able to know the price changes through the price quotations provided by the stock exchanges in case of listed securities.
8. Listing of shares in stock exchanges provides investors facilities for transfer, registration of rights, fair and equitable allotment.
9. Share holders are provided due notice with regard to book closure dates, and they can take investment decisions accordingly.
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