Trading and transfer of ownership of shares is the lifeline of a compa

1.	Trading and transfer of ownership of shares is the lifeline of a company. Give reason.
Answer» Easy transfer of shares: The shareholders sell and purchase the shares of the company in the stock market. They can easily do so subject to the provisions of the company and the law. If one sees trial ine company is performing well he can buy its shares from the stock market. On the other hand the holder of the shares can sell them at the stock market and book his profit. This way the share-trading continuous in the market. Thus, trading and transfer of ownership of shares is one of the main and continuous characteristic.

Trading and transfer of ownership of shares is the lifeline of a company. Give reason.

Answer»

Easy transfer of shares:

The shareholders sell and purchase the shares of the company in the stock market. They can easily do so subject to the provisions of the company and the law.
If one sees trial ine company is performing well he can buy its shares from the stock market. On the other hand the holder of the shares can sell them at the stock market and book his profit.
This way the share-trading continuous in the market. Thus, trading and transfer of ownership of shares is one of the main and continuous characteristic.