STOCK EXCHANGE – MEANING & SALIENT FEATURES

STOCK EXCHANGE – MEANING & SALIENT FEATURES
Q. What is a Stock Exchange? State its salient features.
ANSWER:
Stock Exchange is a market for the sale and purchase of stocks and shares of different Companies.
Stock Exchange provides facilities for long term investments and movements of capital. It is an
organized market and is a section of capital market.
Stock Exchange are found in all big industrial and commercial centers, e.g., Karachi Stock Exchange,
Bombay Stock Exchange, London Stock Exchange, etc.

SALIENT FEATURES:
There are certain salient features of a Stock Exchange. They may be enumerated as follows:
1. The business is varied and cosmopolitan in nature.
2. It is the nerve – centre of polities and finance.
3. It represents the industrial and commercial life of a country.
4. It provides new horizon for business.
5. It provides a free market for securities.
6. It provides capital to industry and commerce by investors, traders, bankers and govt.
7. It helps government to barrow from public.
8. It is linked with the prosperity of the world in general and of a country in particular.