Financial Markets

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• Summary

The following are some of the important functions of a stock exchange:

1. Providing Liquidity and Marketability to Existing Securities.
2. Pricing of Securities.
3. Safety of Transactions.
4. Contributes to Economic Growth.
5. Spreading of Equity Cult.
6. Providing Scope for Speculation.

The following are some of the important functions of a stock exchange:

1. Providing Liquidity and Marketability to Existing Securities.
2. Pricing of Securities.
3. Safety of Transactions.
4. Contributes to Economic Growth.
5. Spreading of Equity Cult.
6. Providing Scope for Speculation.

Stock Exchanges are the organisations which provide a platform for buying and selling of existing securities.

Now -a- days trading on stock exchange takes place via online screen based electronic trading system by following the laid down procedure:

1. Selection of Broker
2. Opening Demat Account
3. Placing the order
4. Executing the order
5. Settlement