| Redistribution of wealth: By giving many people a chance to buy shares of listed companies and therefore
become part-owners of profitable enterprises, the stock market helps to reduce large income inequalities because many
people get a chance to share in the profits of businesses that were set up by other people.
Creating investment opportunities for small investors: As opposed to other businesses that require a huge
capital outlay, investing in shares is open to both large and small investors because a person buys the number of shares
that he can afford. Therefore the stock exchange provides an extra source of income to small savers.
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