Join Sarthaks eConnect Today - Largest Online Education Community!
0 votes
asked in Entrepreneurship by (76.6k points)

Explain any four importance of stock market from the viewpoint of investors. 

1 Answer

+1 vote
answered by (86.8k points)
selected by
Best answer

a.Dissemination of useful information: Stock exchange publishes useful information regarding price lists, quotations, etc., of securities through newspapers and journals. 

b.Ready market: Persons desirous of converting their shares into cash may easily do so through a member of stock exchange. 

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

d.Genuine guidance about the securities listed: The investors can safely depend upon the information provided by the stock exchanges. e.Barriers of distance removed: Stock exchange removes the barriers of distance with regard to securities listed there. 

f. 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.

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

One Thought Forever

“There is a close connection between getting up in the world and getting up in the morning.“
– Anon