Why do we need stock market?

[asniromio]

stock market functions as a plat form for both the investors and speculators.it is a place where the buyers and sellers meet

Capital financing:-A company needs capital to start a new business or expand the existing operations.To raise funds a company issues various securities

Liquidity of stocks:- an investor cannot get refund of the money which is invested.In this case of the stock market serves as a place to sell the stocks this is known as liquidity function of stocks.

Stop unfair and fraudulent trade:- When there is no market the buyer might not know the actual value of the share and so there is a danger of buying as low value share with high price. here the price is determined by the buyer and seller.The shares are trade on the market price.irrespective of the quits and bids of the both the parties.

[V.VEDANAYAGAM]

STOCK MARKET also known as secondary market is needed because thro this alone one who got the share thro IPO can sell his shares AT CMP and get his money back CONVERSELY one who has not alloted share at IPO or alloted less number of shares or who has failed to apply thro IPO can buy the share at CMP

[kanakaraj]

Stock market is a secondary market which regulates selling and buying in such a way that everyone can do business through agents.
This is totally controlled by SEBI.

[Aravind]

Stock market is the place to buy or sell your shares. Its a market place for doing the transaction.

[Suriyaprabu]

We need stock market for purpose of selling the shares which we bought from the particular company.

[Author]

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