1. Ready and Continuous Market: Stock exchange helps the investors to sell his securities easily. And also he can convert his cash into securities.
2. Correct Evaluation of Securities: The prices at which securities are bought and sold are recorded and informed to the public. These prices are called “market quotations”
3. Protection to Investors: All dealings in a stock exchange are in accordance with well- defined rules and regulations. Any malpractice will be severely punished.
4. Proper Channelisation of Capital: People like to invest in the shares of companies which yield good profits. Also people invest in the companies which are giving good dividends.
5. Facilities for Speculation: Speculation is an integral part of stock exchange operations. As a result of speculation, demand for and supply of securities are equalized.
