State the benefits that an investor could derive from a stock exchange market.

      

State the benefits that an investor could derive from a stock exchange market.

  

Answers


Kavungya
a. Improved efficiency of financial system.
b. Minimization of wastages. Operations are done according to regulations.
c. Revenue mobilization
d. Generated through buying and selling of shares by brokers.
e. Efficient allocation of investment
f. Because it's a free market where government intervention plays a minor
role hence increase efficiency in resource allocation.
g. Investment transfer to local people i.e. for those foreign owned can be
bought.
h. Enables privatization and commercialization: where private persons can
take part in provision of goods and services.
i. Private persons can also offer services provided by government and banking system.
j. Debt-Equity Swap
k. Where debt instruments could be converted to equity.
l. A wider ownership base is available instead of having a one-man show (which is government).
m. Stricter reporting requirements are mandatory.
n. Enhances private sector solvency.
o. It's possible to have access for funds by firms.
Kavungya answered the question on September 25, 2019 at 12:59


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