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Many countries encourage small investors to buy quoted shares.why?

Many countries encourage small investors to buy quoted shares.why?

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Answer #1

They do so because small investors don't have the resources and the time to do proper research of any company before buying the shares. Hence, if they invest in the quoted or listed shares, the firms have to provide information like their financial statements regularly in the form of quarterly results. So, the exchanges try to protect the small investors from bad investments. Also, unlisted or unquoted shares wouldn't have any liquidity and small shareholders wouldn't be able to find private players to sell off their shares like institutional investors. Therefore, listed shares are the right investments for them.

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