The importance of a stock exchange from the view point of entrepreneurs /companies:
1. Recognition: The market values of companies’ shares are published in important dailies. This enhances the reputation of good companies/ entrepreneurs.
2. Wide market: The securities of some companies are listed in some stock exchanges. The market for the securities of such companies is considerably widened. Thus, larger amounts of capital may be raised from different types of investors.
3. Higher share values: People have a tendency to buy shares that have some premium value. Demand of such shares increases. This leads to further increase in the price of such shares.
Value Points:
• Enhances the reputation of good companies
• Universal
• Social services
• National awareness
• Readiness to cooperate
• Helpfulness
• Consideration for others
• Friendship
