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We need stock market to exchange shares among people because once we invested in the company they won’t refund when we need so shares are transferred to other
If once the company issue their share to the public through IPO then the company doesn’t get profit with their existing share and the variation in share price also won’t affect company’s growth. Hence the stock market is for the retails who can buy or transfer the shares.
Stock market is needed for both investors and owners to meet. And it is a common place for share buyers and sellers.
Stock market is the place where all the piece of necessary information for making an effective trade is available at cheap cost almost nil and also to settle the deal between an investor and seller.
So we need stock market for this.
<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; line-height: normal; -webkit-text-stroke-width: 0.15px;”>The stock market is the market in which shares of publicly held companies are issued and traded either through exchanges</span>
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Read more: Stock Market Definition | Investopedia http://www.investopedia.com/terms/s/stockmarket.asp#ixzz4HZeERsvT
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