Question

What is stoch exchange? Explain the functions of stoch exchange.

Answer 1

 A

stock exchange is a corporation or mutual organisation which provides "trading" facilities for stock brokers to trade in stocks and other securities. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.

These roles include:

Raising capital for businesses

Mobilising savings for investment

Facilitating company growth

Profit sharing

Corporate governance

Creating investment opportunities for small investors

Government capital-raising for development projects

Barometer of the economy