Industrial financing. Pricing of Securities: The stock market helps to value the securities on the basis of demand and … They allow investors to buy and sell shares of a company among each other in a regulated physical or electronic space… The stock exchange enables both the investors and the companies to sell or buy securities and thereby enable the availability of funds. Without a stock exchange, these owners would have to find a buyer by going to friends, family, and community members. It is market where the owners may purchase or sell/ dispose off their securities as per certain well defined rules and regulations. Each stock exchange has its own laws and bye-laws. Stock exchange: The stock exchange is a market place where anyone can start trading of shares of different companies. Stock … They fully protect the interest of investors. There is a very simple process for creating accounts in the stock market and start trading. Stock exchanges are places where stocks are traded. Stock exchange is a market place where stock, shares and other types of securities are bought and sold. The company needs to register itself first … Capital formation occurs due to savings and investments. Facilitates evaluation of securities. The stock exchange is one of the most successful and profitable businesses but risky too. Industrial development of a country depends on the availability of capital. So, we describe here all functions of stock exchange below: The stock exchange encourages healthy speculation and provides opportunities to shrewd businessmen to speculate and reap rich profits from fluctuations in security prices. A stock exchange provides platform to deal in securities. It is a secure place where trading is done in a systematic way. A stock exchange renders valuable services to the investors, the corporate sector and the society. The forces of demand and supply work freely in the stock exchange. A stock exchange provides a platform where such trading can be easily conducted by matching buyers and sellers of stocks. They can be shares of a stock, a bond or any other related financial instrument. Facilitates public borrowing Any artificial scarcity is prevented due to the rules and regulations of the market. For the average person to get access to these exchanges… When a business raises capital by issuing shares, the owners of those new shares will want to sell their stake someday. Investors are attracted towards profitable companies and come forward to invest their savings in the corporate securities. The price of security is based on supply and demand position. They create the healthy habit of saving, investing and risk bearing among the investors. Here, the securities are bought and sold as per well-structured rules and regulations. The function of the stock exchange: Trading of shares of a company that belongs to different categories. 5. A stock exchange is a market place where securities that have been listed thereon, may be bought and sold for either investment or speculation. In this way, prices of securities are determined. Due to various rules and regulations, stock exchange functions as the custodian of funds of genuine investors. Listed companies have to comply with rules and regulations of concerned stock exchange and work under the vigilance (i.e supervision) of stock exchange authorities. A stock exchange is simply an institution, a platform, or a facility where different stockbrokers and traders can interact and bring about transactions by buying and selling shares. It creates a healthy trend in the market. 6. Regulates company management. (3) Safety of Transactions: Stock exchanges are organised markets. Stock exchange is useful for the evaluation of industrial … How a Stock Exchange Works . Thus, stock exchanges facilitate flow of capital into more profitable channels. Stock exchanges facilitate capital formation in the country. The prices quoted in stock exchanges indicate the extent of popularity of companies. A stock exchange is an important factor in the capital market. By this, the money mark…