Role of Stock Exchange

Role of Stock Exchange:

Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and higher productivity levels.

Facilitate company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways to company growing by acquisition or fusion.



Redistribution of wealth

By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises, the stock market helps to reduce large income inequalities. Both casual and professional stock investors through stock price rise and dividends get a chance to share in the profits of promising business that were set up by other people.

Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations by public stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies (e.g. Enron Corporation, MCI WorldCom, Pets.com, Webvan, or Parmalat).

Creates investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers.

Government raises capital for development projects

Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such municipal bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

Heart Touching Photos

Heart Touching Photos


Funny and Amazing Pics

Funny and Amazing Pics


water Show in India

water Show in India

Sat-Chit-Anand water Show Akshardham-Gandhinagar

Jay Swaminarayan this video is about new built water show at Gandhinagar Akshardham. Inpire by HDH Pramukh Swami Maharaj. This is reaaly nice water show i never ever seen before.
Krunal Barot- Melbourne
This is only Trailer you need to go to Akshardham to see personally.
Enjoy video
Jay Swaminarayan


The Man With The Goldfish Earrings

Ojisan used to be a postman but he always wanted to be an actor and be in the center of attention. As an opportunity to become a professional entertainer never emerged, he decided to claim the spotlight after he retired. These days he walks around dressed as you can see in the photos, wearing goldfish in plastic bottles as earrings and oversized funny hats and tourists just can’t help but take photos of Ojisan, as memorabilia.

Toyota Minivan 2015

Toyota Minivan 2015

Despite Toyota’s best efforts to make the minivan hip, until they change up their look, minivans will continue to be avoided by families everywhere. With their Toyota Minivan concept designed for 2015, they may be onto something once again. Part of an internship project held at Toyota design studio, this Hybrid Toyota Minivan is based on the current 7 seater Toyota Estima. Inspired by the Japanese bullet train and futuristic looking Tokyo River boat, the concept’s futuristic exterior just may be a true “swagger wagon.”

The concept features transparent door surfaces, along with one motion windscreen integrated in a glass roof, that provides a scenic view to the occupants. Its three row of seats include five seats for adults in the front two rows and a third one specifically designed for the children. This row is placed above the ground and can rotate, offering an awesome view for always curious kids. So for you twenty-somethings getting a kick out of the Sienna Family ads: watch out, because in 2015, this could be yours.

Emmy Rossum at Urban Outfitters in LA

Emmy Rossum at Urban Outfitters in LA


Manisha Koirala Wedding - Traditional Nepali Ceremony

Manisha Koirala Wedding - Traditional Nepali Ceremony


Bollywood star Manisha Koirala finally get married on Friday with businessman Samrat Dahal, who is seven years younger to her, in a traditional wedding ceremony near the Nepalese capital. The wedding ceremony was a low-key affair with 150 guests and close family friends attending the event, which will be off-limits for the media.

 

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