The benefits of Stock Exchange are classified into benefits to the Community, Company and Investors.
Benefits to the Community:
1. Economic Development: It increases the economic development by ensuring steady flow of savings for production.
2. Fund Raising Platform: It enables the wellmanaged companies to raise funds by issue of shares.
Benefits to the Company:
1. Enhances Goodwill or Reputation: Companies whose shares are quoted on a stock exchange enjoy greater goodwill and credit standing.
2. Raises huge funds: Stock exchange helps the companies to raise huge funds by issue of shares and debentures.
Benefits to Investors:
1. Liquidity: Stock exchange helps to convert his shares into cash quickly.
2. Investor protection: The stock exchange safeguards, investor’s interest by following strict rules and regulations.
