Stock Exchange

Objectives of Stock Exchanges To promote Savings To guarantee legal and economic security Promotes investors interest Checking malpractices Corporate Governance     .

trusts. Both genuine investors and speculators buy and sell shares. municipal corporations etc. A stock exchange is an association of persons whether incorporated or not. The trading in a stock exchange is strictly regulated and rules and regulations are prescribed for every transaction.Characteristics of Stock Exchanges It is a place where securities are purchased and sold. are allowed to be dealt at stock . The securities of corporations. governments.

  “ Stock Exchange means any body of individuals. 1956.” . selling in securities.Securities Contract (Regulation) Act. regulating or controlling the business of buying. constituted for the purpose of assisting. whether incorporated or not.

Functions of Stock Exchanges To provide liquidity to investors To fix price of securities To provide official information about the quantities negotiated/prices Permitting access to profitable activities Portfolio diversification Free publicity Depository Exchanges Listing of Securities .

Functions of Stock Exchanges Enhances investor’s knowledge Promotes research and investigation Facilitating company growth Redistribution of wealth Creating Investment opportunities for small investors Barometer of the economy Government capital raising for developed projects Safety in dealing .

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