Stock Exchanges Funtion and Purpose

Economics of Financial Markets What are the purpose and functions of stock supervene upons as financial intermediaries? Financial intermediaries are institutions such as grammatical construction societies, banks, stock exchanges and insurance companies. They all act as an go-between between people, institutions or countries that may have extravagantly incomes, pelf or surpluses and those that have lower incomes, losses and deficits. Some study stock exchanges around the field are: the New York stock exchange (big board), NASDAQ, American (AMEX), London (LSE), Toronto (TSE), Bombay (BSE), Australian (ASX) and lastly the capital of Japan stock exchange (TSE) One of the main purposes of the stock exchange is to provide a platform for the new born companies and vivacious ones to raise money through the issuing of shares, this takes place in the primary market. The primary exists because of the symbiotic likenessship it shares with the secondary market. The liquid of exchange is very attractive for investors to buy and sell securities at any given time. There is strong evidence to conjecture that the stock exchange and the economic system of the country support from each one other. The stock market shows the strength of the economy and the stage of development.

t wherefore its important for stock exchanges to compete for investors funds and hence acquiring a large amount of investors which as a result means a more important economy but also being vulnerable to the butterfly piece or the famous saying when America sneezes, the rest of the world catches a cold. In a large prestigious stock exchange, companies willing to enter must meet the NYSE Euronext requirements. Additionally, the stock market must have two qualities: cabalistic market and broad market. Deep market absorbs transaction of high magnitudes, able to maintain its share price with no relation to the large quantity of shares being sold. This is also achieved due to the unforgiving pool trading adopted the LSE. The broad market refers to the class of shares of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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