Stock Exchange

Commerce SSS3 First Term

WEEK 7

Stock Exchange

Performance Objectives

The student should be able to:

     1. Explain the meaning of stock exchange

     2. State the functions of stock exchange.

Content

Meaning of Stock

Exchange Stock exchange is a specialized market for buying and selling of securities. These securities are shares and stock which represent ownership interests in businesses, debentures and government bonds. This is a market where those who are interested in purchase of securities are brought into contact with the sellers.

Importance of Stock Exchange

1. An avenue for raising capital: Companies and governments raise capital through stock exchange.

2. Employment Opportunities: It provides employment opportunities for brokers, jobbers, clerks etc.

3. Provides information to…