Practicing Success
Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges. |
Providing liquidity and marketability to existing securities. Pricing of security. Safety of transaction. Spreading of equity cult. |
Pricing of security. |
Share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. Such a valuation provides important instant information to both buyers and sellers in the market |