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A stock exchange allows companies to have a funding source besides traditional banks for obtaining the money that the need. A stock exchange allows consumers to participate directly in the market of a country.

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Objective of stock exchange?

Stock Exchange in any country serve one basic objective That is Funding to companies listed on that stock exchange. Companies float their IPOs on exchange and in return give buyers right of ownership and annual dividends(sometimes twice a year). Companies sell their right of ownership to traders/investors/FIIs etc and in return generates capital for their companies. Stock Exchanges also attract lots of FIIs which is good for country economy.


What are limitations of stock exchange in economy?

There are two types of limitations of stock exchange in economy; economic limitations and personal limitations. Economic limitations refers to when companies back off from investing due to fears, and personal limitations refers to small investors not being able to impact the stock exchange by investing.


What is the importance of agricultural stock exchange?

The stock exchange is important in agriculture because it keeps a check on supply and demand. It allows the stockholders to use the value of the stock to obtain loans and make purchases. It is also very boring


Stock exchange is a barometer of a country's prosperity Comment on this statment?

Yes


What are the advantages of Nigerian stock market to Nigerian economy?

The Nigerian Stock Exchange or NSE benefits the Nigerian Economy the same way the London Stock Exchange adds value to the British Economy. Investors in Banking stocks in particular have seen spectacular returns recently. The NSE is an institution which helps businesses raise funds for growth or expansion within their domestic, regional or international markets. A strong NSE means Nigerian companies have access to capital they'll need to become regional power houses or true multinationals. In addition, Nigerian companies pay tax on their worldwide income. So the richer these companies get, the more revenue in tax is available to the Government to spend on schools, roads or other public services. At least in theory( ahem!).

Related Questions

Which country is the Dhaka Stock Exchange located in?

Dhaka Stock Exchange is located in Motijheel in Dhaka city. This is main stock exchange in the country of Bangladesh.


In which country is the Borsa stock exchange located?

The Borsa stock exchange is the ninth largest stock exchange in Europe. It was founded in 1860 and is located in Stuttgart, Germany, where it is the second largest stock exchange.


In What country is the first stock market open?

South Pacific Stock Exchange South Pacific Stock Exchange - Fiji


Objective of stock exchange?

Stock Exchange in any country serve one basic objective That is Funding to companies listed on that stock exchange. Companies float their IPOs on exchange and in return give buyers right of ownership and annual dividends(sometimes twice a year). Companies sell their right of ownership to traders/investors/FIIs etc and in return generates capital for their companies. Stock Exchanges also attract lots of FIIs which is good for country economy.


What is the function of a stock exchange?

stock exchange determines that the country is poor or rich. India also has a share market(stock exchange market) in Mumbai.The stock exchange falls or rises each day.


What role has information technology played in the Nigerian Stock Exchange?

Please what is the importance of information technology (I.T) yo the Nigerian stock exchange?


Can a country have two stock exchanges?

Yes. Ex: India has NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)


Bombay stock exchange is in what country?

India


In which country is the Chittagong stock exchange?

The Chittagong Stock Exchange is located in the commercial area of Agrabad within the city of Chittagong which is Bangladesh. This Stock Exchange was founded in 1995.


What are limitations of stock exchange in economy?

There are two types of limitations of stock exchange in economy; economic limitations and personal limitations. Economic limitations refers to when companies back off from investing due to fears, and personal limitations refers to small investors not being able to impact the stock exchange by investing.


What is the importance of stock exchange?

Stock exchanges offer companies a convenient way to sell stock. Investors use the exchange to quickly access and monitor the capital they have created in a particular business.


What has lessened the importance of stock exchange monitoring?

Government regulation and increased competition from automated-trading systems lessen the importance of exchange monitoring and standardized rules.