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They make stocks, bonds etc liquid investments so you can buy them or sell them easiliy and at a more fair price. They provide information about the value of any single security at that moment in time. They make people more confident in investing because the investor knows it's reasonable to expect (s)he will be able to sell at a fair, but perhaps unpleasant price. First and last redundant I guess./

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Q: What are the major benefits of security exchanges?
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