Stock exchanges enhance the marketability of securities and thereby provides liquidity to investments.
1. From the investor’s point of view, this market imparts liquidity to the long-term securities held by them providing an auction market for these securities.
2. Generally, in the stock market securities are held for long term and get matured after a long time period. But stock market facilitates to sold the securities easily and at any time the security holders want and convert it into cash.
3. It operates through the medium of stock exchanges which regulates the trading activities in this market and ensures a measure of safety and fair dealings to the investors.
