2. Fonctions of Stock Exchanges:
Facilitate liquidity and marketability of outstanding debt and equity instruments,
Contribute to economic growth through allocation/mobilization of funds to the
most efficient channel through disinvestments and reinvestment.
To provide instant valuation of securities caused by changes in internal
environment.
Facilitate measurement of cost of capital and rate of returns of economic entities
at micro level.
To ensure a measure of safety and fair dealing to protect investors interest.
To induce companies to improve performance since market price at stock
exchanges reflects the performance. So, companies/corporates strive to improve
their performance.