Explain the Benefits of Stock Exchange.

1.	Explain the Benefits of Stock Exchange.
Answer» The benefits of Stock Exchange are classified into benefits to the Community, Company and Investors. Benefits to the Community: 1. Economic Development: It increases the economic development by ensuring steady flow of savings for production. 2. Fund Raising Platform: It enables the wellmanaged companies to raise funds by issue of shares. Benefits to the Company: 1. Enhances Goodwill or Reputation: Companies whose shares are quoted on a stock exchange enjoy greater goodwill and credit standing. 2. Raises huge funds: Stock exchange helps the companies to raise huge funds by issue of shares and debentures. Benefits to Investors: 1. Liquidity: Stock exchange helps to convert his shares into cash quickly. 2. Investor protection: The stock exchange safeguards, investor’s interest by following strict rules and regulations.

Answer»

The benefits of Stock Exchange are classified into benefits to the Community, Company and Investors.

Benefits to the Community:

1. Economic Development: It increases the economic development by ensuring steady flow of savings for production.

2. Fund Raising Platform: It enables the wellmanaged companies to raise funds by issue of shares.

Benefits to the Company:

1. Enhances Goodwill or Reputation: Companies whose shares are quoted on a stock exchange enjoy greater goodwill and credit standing.

2. Raises huge funds: Stock exchange helps the companies to raise huge funds by issue of shares and debentures.

Benefits to Investors:

1. Liquidity: Stock exchange helps to convert his shares into cash quickly.

2. Investor protection: The stock exchange safeguards, investor’s interest by following strict rules and regulations.

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