Which of the following is/are importance of the stock exchange?

Continuous and ready market for securities Facilitates evaluation of securities Checks on brokers All of the above

All of the above

Stock exchange performs a number of functions in respect of marketability of different types of securities for investors and borrowing companies. It is important functions are: a) Continuous and ready market for securities: Stock exchange provides a central market for purchase and sale of securities. It provides ready and continuous outlet for buying and selling of securities. Buyers and sellers strongly believe that they would be able to buy and sell securities as and when they want. b) Facilitates evaluation of securities: Stock exchange is useful for the evaluation of industrial securities. It publishes price quotation of the shares of the companies that have been listed with them after thorough analysis of demand and supply position. This enables investors to know the true worth of their holdings at any time. c) Checks on brokers: Stock exchanges control the activities of brokers and protect the investors from being deceived. Now, if any broker is found indulging in malpractices as overcharging or giving wrong information, his/her licence may be cancelled.