What is Stock Exchange?
Stock Exchange Introduction
Stock Exchange is mechanism who have assisting,regulating or controlling the business of buying and selling in securities.Stock Exchange gives right to company for trading in secondary market.Stock Exchange allows trading under some certain rules and regulations.
Two Nation level Stock Exchange in India-
a.)National Stock Exchange
b.)Bombay Stock Exchange
Functions of Stock Exchange
Features of Stock Exchange
a.)Company when listed in Secondary Market that means securities are purchased or sold.
b)Company can not approach directly to investor for investing,Investor invest in company by National Stock Exchange or Bombay Stock Exchange.
c.)Stock Exchange is strictly regulated to companies and rules regulation prescribed for various transaction.
d.) Promoters,Investor and Speculator purchased and sell companies shares from Stock Exchange.
Characteristics of Stock Exchange
a.)Stock Exchange keep records of capital,revenues formation of all listed companies in NSE and BSE.
b.)Stock Exchange watch all active trading of investors,speculators and promoters.
c.)Stock Exchange increase liquidity of assets in financial market.
d.)Stock Exchange provide growth to company by investor and profit to investors by dividends and profits.
Importance of Stock Exchange
a.)Increase Liquidity in Financial Market
The Stock Exchange provide a platform where shares and stocks are converted into cash.Where buyer and seller are invest and generated profit.
b.)Increasing Company Growth
When any company want growth and increase revenue,they want listed in stock exchange for span his business by investors investments.
c.)Increasing Company Faith on Investors
Nobody invest his money in any company without any believed but stock exchange is gives believing power to investor because those company listed in NSE and BSE is directing and controlling by Securities Exchange Board of India.
d.)Evaluation of Listed Securities
The Stock Exchange Evaluate all Securities who have listed in stock exchange.The Stock Exchange evaluate company profits ,revenue ,promoter trading block deal etc.
e.)The Stock Exchange provide secure dealing in shares
The Stock Exchange watch trading of all companies and provide secure dealing in shares trading to investors.
How to increase prices of company shares in Stock Exchange?
In Stock Exchange Company Share prices depend on some factors
a.)Financial Graph of the company
b.)Company business and diversification
c.)Company Market Value
d.)Company Product Demand and Supply
e.)Promoters and Speculation Activities
Hope you understand this article,What is Stock Exchange?,if there is any question related to this article, then you can ask and comment.
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