Solved IGNOU Assignments

The importance of stock exchange lies in the services which they provide to society. The services rendered by the stock exchange can be categorized as follow:- Services to investors Services to companies Services to community SERVICES TO INVESTOR: - The stock exchange provides the following kinds of services to the investors:- Easy marketability and liquidity: - The stock exchange provides the regular and ready market for sale and purchase of securities. The investor can convert their securities into cash and cash into securities at any time. So, it provides easy marketability and liquidity to the investor. Publication of quotation: - The stock exchange publishes in the newspapers and periodical the rates at which various securities are the deal in it. It is very useful for existing as well as prospective investor Safeguarding the investor’s interests: - The stock exchanges operate strictly according to rules and regulations enacted through various acts. It eliminates the pos...

FUNCTIONS OF STOCK EXCHANGE Easy Marketing: - The securities can be easily sold and purchased in the stock exchange. The investors know the market value of the securities. So they can invest money in desired securities and released cash whenever required. Capital formation: - stock exchange creates the habit of saving and investing among the people. It leads to invest of funds in corporate and government securities. Thus, it contributes the capital formation. Facilitates speculation: - stock exchange provides opportunities to the investor to speculate. Due to speculation the supply and demand of securities’ may be equalized. Safeguarding for the investor: - The dealing in the stock exchange are governed by the rules of securities control act 1956. It protects the interest of investor through the enforcement of rules of the act. Guidelines for new issue: - It provides guidelines regarding new issues of securities. It also guides the companies regarding the scheme of allotment of sh...

MEANING OF STOCK EXCHANGE The stock exchange is an organized market where the sale and purchase of second-hand securities i.e. shares, debentures, bonds etc take place according to specified rules and regulations. It facilitates the trading of listed securities only. Listed securities are those securities which are recognized by a stock exchange for the purpose of sale and purchase of securities. It provides finance to the government sector. It is an indispensable institution for the steady growth of the corporate sector. It is established for the purpose of assisting, regulating and controlling business in securities. The stock exchange is recognized as a nerve center of the economy of any nation. According to Bismark, “If you want to know how the things in Britain are going on, do not study the House of Commons, but watch the London stock exchange.”