Some of the Important Functions of Stock Exchange/Secondary Market are listed below:
Economic Barometer: ...
Pricing of Securities: ...
Safety of Transactions: ...
Contributes to Economic Growth: ...
Spreading of Equity Cult: ...
Providing Scope for Speculation: ...
Liquidity: ...
Better Allocation of Capital:
How do stocks work? Companies sell shares in their business to raise money. They then use that money for various initiatives: A company might use money raised from a stock offering to fund new products or product lines, to invest in growth, to expand their operations or to pay off debt.
Different Types of Stocks to Invest In: What Are They?
Common stock.
Preferred stock.
Large-cap stocks.
Mid-cap stocks.
Small-cap stocks.
Domestic stock.
International stocks.
Growth stocks.