A stock exchange provides a reliable and secure clearing mechanism. You can be sure that the stocks you buy will be delivered to you, no matter what happens to the party you bought them from.
Economies of Scale
One of the advantages of the inventory replace is that is enjoys economies of scale due to so still method passes over it. This helps to carry costs low, forging it less expensive to purchase and sell stocks.
A inventory exchange can use millions of transactions to spread fixed costs of setting up and maintaining orderly and secure trading, whether it's done on the computer or the exchange floor. The bigger a stock exchange is, the cheaper it is to trade an individual stock on it.
In the U.S., the two biggest exchanges are the New York Stock Exchange, or the NYSE, and the Nasdaq Stock Market, usually referred to as the Nasdaq.
Investor Protection
Stock exchanges require listed companies to meet strict regulatory requirements with regard to financial reporting, corporate governance and disclosure. In the U.S., the regulatory agency is the Securities and Exchange Commission. Investors get access to all relevant information about the listed companies so they can make informed decisions about whether to buy or sell shares.
Secure Clearing
The inventory transform is a guide financial college in free-market economies.The inventory transform is crucial financial faculty in any free-market economy. It lets alone investors and investment firms change central and shift income to places where there are most needed. Inventory exchanges can again serve as a funds stuff.
