The stock exchange is really an essential pillar of the private sector corporate economy. It discharges three essential functions:
- First, the stock exchange provides a market place for purchase and sale of securities viz. shares, futures & options and stock futures & options. It, therefore, ensures the free transferability of securities which is the essential basis for the joint stock enterprise system.
- Secondly, the stock exchange provides the linkage between the savings in the household sector and the investment in the corporate economy. It mobilizes savings, channelizes them as securities into these enterprises which are favoured by the investors on the basis of such criteria as future growth prospects, good returns, and appreciation of capital.
- Thirdly, by providing a market quotation of the prices of shares and futures & options-a sort of collective judgment simultaneously reached by many buyers and sellers in the market-the stock exchange serves the role of promoter, not only of the state of health of individual companies, but also of the of the nation’s economy as a whole.
Past Performance of Our Stock tips / Recommendations
