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Benefits of Organized Securities Exchanges

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What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?

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The benefits of organized securities exchanges are discussed in 500 words.

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What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?

The capital markets are the markets in equity (shares) and long-term debt (bonds); in other words, the markets for long-term capital. In this market, the capital funds comprising of both equity and debt are issued and traded. Capital market can be further divided into primary and secondary markets. In the primary market, securities are offered to public for subscription for the purpose of raising capital. Secondary market is a market where already existing (pre- issued) securities are traded amongst investors.

The primary market is the first-sale market. The secondary market, on the other hand, is what happens after that. It is the resale market, where the securities trade once the securities have been ...

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