Stock markets for securities are important because

Question

Quizplus · Accepted Answer

Stock markets for securities are important for corporations as they provide a platform to raise financial capital by issuing stocks and bonds to investors. Proprietorships and partnerships usually do not go public, and hence do not need stock markets for securities to raise capital. While stock markets can make the stocks and bonds more valuable, the primary purpose is to enable companies to raise financial capital. Additionally, while individuals may transfer their savings into investment spending through the stock markets, this is not the main reason for their importance.

Stock Markets for Securities Are Important Because