Stock exchange
The necessity of stock exchange is vital for a country because stock exchange is an indispensable part of a country's economy. Stock exchange is a basket of investors which helps to develop a giant capital infrastructure to run a country's economy.
Stock exchange easily allocates investors assets and helps them to profit thereby. It increases the flow of capital in the market economy and reduces the risks by enforcing some important rules, which facilitate the investors. It also helps general investors to invest in different companies. Stock exchange provides the important information about the listed companies such as EGM, AGM, IPO, etc., which helps a single investor, because it is not possible for a single investor to collect all these information about different listed companies. Not only that, stock exchange also protects the price of shares by circuit breaker. Funds, which could have been consumed, or kept in idle deposits, are mobilized and redirected to support business commotion with benefits for numerous economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth. Our stock exchanges, both DSE and CSE are running under company act 1994. According to this act, our two stock exchanges are non-profitable public limited companies, where the members are taking the profit of this company and they can also reinvest their profit and thus build a giant market infrastructure.
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