Answer / vijaya

he stock exchange market has multiple functions, its main
activities are two:

To promote the savings and for them to be canalized towards
of carrying through investment projects that otherwise
wouldn’t be possible you need that the issuing institution
of the securities to be admitted for quoting. The
negotiations will be done on the primary market.
To provide liquidity to the investors. The investor can
recuperate the money invested when needed. For it, he has to
go to the stock exchange market to sell the securities
previously acquired. This function of the stock market is
done on the secondary market.

Other functions of the stock exchange market as an
organization are:

To guarantee the legal and economic security of the agreed
contracts.
To provide official information about the quantities that
are negotiated and of the quoted prices.
To fix the prices of the securities according to the
fundamental law of the offer and the demand.

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