O'Reilly logo

Get Started in Shares by Glen Arnold

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

The main benefits of a well-run stock exchange

Firms can find funds and grow

Because investors in financial securities with a stock market quotation are assured that they are able to sell their shares quickly, cheaply and with a reasonable degree of certainty about the price, they are willing to supply funds to firms at a lower cost than they would if selling was slow, or expensive, or the sale price was subject to much uncertainty. Thus stock markets encourage investment by mobilising savings.

Allocation of capital

An efficiently functioning stock market is able to assist in the allocation of investment capital. If the stock market were poorly regulated and operated then the mispricing of shares and other financial securities could lead to scarce ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required