| The Importance of Stock Exchange
The economy of the world relies on the stock exchanges to facilitate trade in the stocks of companies by connecting
people who seek money with those who can provide it. While the typical role of the stock market as a centre of trading
in securities is the raising of funds for investment in long term assets to the investing public, there are other roles that
can be summarized as follows:
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 unused deposits with banks,
are mobilized and redirected to promote commerce and industry.
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