Short essays. No more than half a page per essay.
18. Explain the 3 roles that the stock exchanges play.
Stock exchanges connect to the buyers of securities with the sellers and provide conveniences to them. There are various sellers of shares of different companies in the market and without a stock exchange it will be almost impossible for them to find sellers for the same. Stock exchanges provide a platform with liquidity and marketability to the existing securities.
A stock exchange enables valuation of securities based on the forces of demand and supply. This eases the pricing process and provides instant data to both the buyers and the sellers of securities.
Stock exchanges enable economic growth by boosting investment. Without stock exchanges it would be extremely difficult for companies to raise funds for their growth. The convenience provided by stock exchanges enables companies to raise enough funds to be able to invest in the economic growth of the nation.
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