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What is the function of Securities Market?

November 18th, 2008

Securities Markets is a place where buyers and sellers of securities can enter
into transactions to purchase and sell shares, bonds, debentures etc.
Further, it performs an important role of enabling corporates, entrepreneurs
to raise resources for their companies and business ventures through public
issues. Transfer of resources from those having idle resources (investors) to
others who have a need for them (corporates) is most efficiently achieved
through the securities market. Stated formally, securities markets provide
channels for reallocation of savings to investments and entrepreneurship.
Savings are linked to investments by a variety of intermediaries, through a
range of financial products, called ‘Securities’.
Which are the securities one can invest in?
Shares
Government Securities
Derivative products
Units of Mutual Funds etc., are some of the securities investors in the
securities market can invest in.

 

Posted by sumedhblogs | Filed in Stock Market | 2 Comments »