ABSTRACT
Large corporations may have many thousands of stockholders. Their stock is bought and sold in marketplaces called stock exchanges. A stock exchange occupies an important position in our country’s financial system by providing a mechanism for converting
savings
into physical and portfolio
investment
. It also performs two major functions; it provides a primary or new-issues market, in which new capital can be raised by issuing financial securities, and a secondary market for trading existing securities that facilitates transferability of securities from seller to buyers.
