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Explain the importance of a stock exchange from the viewpoint of investors.

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From the viewpoint of investors 

1. Dissemination of useful information: 

(а) Stock exchange publishes useful information regarding price lists, quotations, etc., of securities through newspapers and journals. 

(b) All the shareholders who wish to buy and sell their securities accordingly use the provided information. 

2. Ready market: It gives a ready market for the security holders, so that all those who wish and are in need of money can easily convert their shares into cash online or through intermediaries. – 

3. Investors’ interests protected: Stock exchanges formulate rules and regulations so that members may not exploit the investors. 

4. Genuine guidance about the securities listed: The investors can safely depend upon the information provided by the stock exchanges. 

5. Barriers of distance removed: 

(a) Stock exchange removes the barriers of distance with regard to securities listed there. 

(b) Without listing the shares in stock exchange the securities can be sold out in a limited market only. 

6. Knowledge of profit or loss on investments: The investors can estimate the profit or loss on the total amount of investments in securities, by comparing the original amount invested and the price of securities on a particular day.

Value points:

1. Sharing the information

2. Helpfulness

3. Quest for knowledge

4. Discipline in following rules and regulations

5. Resourcefulness

6. Equality for all regarding the brokerage

7. Team spirit

8. Universal Shareholders shows the spirit of enquiry.

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