CHARACTERISTICS OF STOCK EXCHANGE
Introduction:
Characteristics of Stock Exchange can be best described as crowded, busy and clumsy market filled with people, running haywire and scribbling on sheets of paper, at the same time yelling on top of their voices on phone. A stock market is simply full of the above mentioned characteristics. Stock Market comprises of people, who are interested to take a plunge in the ocean of risks and uncertainties. In literal terms, stock exchange can be regarded as a corporation or an organization, which facilitates the investors and traders to trade with the stocks of the company. They further facilitate redemption and issues of securities, payment of dividend and income by the way of financial institutions. The securities that are commonly traded at stock exchange comprises of shares, unit bonds and trusts. It is mandatory for a company to get listed on the stock exchange for carrying deals. The stock market has transformed in to electronic market, due to increasing popularity of computers.
Important Characteristics of Stock Exchange:
Stock Exchange provides several facilities such as, the use of computer instead of personally visiting the stock market, fast training, online brokers services and automatic transfer of funds. Below mentioned are few features of a Stock Exchange:
- Nurturing Finance: Stock Exchange requires purchasing and selling of companies shares. The amount earned in the bargain is used by the companies for their own prosperity.
- Growth Prospects: It offers growth opportunities to both company and investor. The amount invested by investors, helps the companies in expanding business and product lines.
- Mobilizing funds: The trading helps in mobilizing the funds. Neither the savings will remain idle in bank lockers instead they are utilized for creating more funds.
- Regulatory check: Stock Exchange allows the Government to keep an eye on the companies listed in the Stock Exchange.
- Interest of Small investor’s: Stock Exchange helps in providing a platform to both the small and big investors. Several small investors can be spotted in the stock exchange trying to earn money.
Overview:
Characteristics of Stock Exchange need to be studied keenly, before participating in the stock Market trading. It has evolved when compared to traditional crowded market, to the more comfortable stock exchange enabling investors to deal online, at the convenience of their offices. |
