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1989 WAEC Commerce Theory Describe any five advantages of the Stock Exchange Market.   

Commerce
WAEC 1989

Describe any five advantages of the Stock Exchange Market. 
 

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Explanation

Advantages of the Stock Exchange Market are:

(i) The stock exchange makes it possible for investments to be converted into cash.

(ii) Being specialist in the stock market, members of the Stock Exchange are able to advise investors on which securities to buy.

(iii)The Stock Exchange market helps to raise capital needed for their business operations.

(iv) The Prices quoted at the market serve as a yard stick to measure the goodwill of their companies.

(v) It enables the government to raise the capital they require for development.

(vi) It provides a financial market for those wishing to invest their money in company shares.

(vii) The values of shares, stocks, bond, gilt edged securities are determined in the market. 


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