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Stock market functions as a platform for both the investors and speculators.it is a place where 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 securities.
Liquidity of stocks:- An investors cannot get refund of the money which is invested.In this case 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 a low value share with high price.Here the price is determined by the buyers and sellers.The shares are trade on the market price irrespective of the quits and bids of the both the parties. Regulations:- every trade is regulated.untrained particles of trade demand creation.information regarding the price are made known to people.
A Stock Market is a regulatory where people can safely Buy and Sell Stocks in which companies can acquire amount for investments and people can get shares of the company.
<p class=”MsoNormal”>Stock market is needed because it provides a safety platform to the buyer and seller in exchanging the shares.company owners also benefited through this exchange process which helps them to attain the objective of equity investment.</p>
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