State any three points of importance of stock exchange from the viewpoint of investors.

Question

Accepted Answer

Three points of importance of stock exchange from the viewpoint of investors are:

1. **Dissemination of Useful Information:** Stock exchanges publish useful information regarding price lists, quotations, etc., of securities through newspapers and journals. Interested persons buy and sell their securities on the basis of information provided by the stock exchanges.

2. **Ready Market:** Persons desirous of converting their shares into cash may easily do so through a member of the stock exchange. This provides liquidity to the long-term securities held by investors.

3. **Investors' Interests Protected:** Stock exchanges formulate rules and regulations so that members may not exploit the investors. The regulations ensure fair dealings and safety of investors' interests.