A. Benefits to the Community

A. Benefits to the Community i. Economic Development It accelerates the economic development by ensuring steady flow of savings into productive purposes. 12th Commerce Unit - - . . PM ii. Fund Raising Platform It enables the well-managed, profit- making companies to raise limitless funds by fresh issue of shares from time to time. i ii. Tools to Divert Resources Scarce resources are thus diverted to efficiently run enterprises for better utilization. iv. Capital Formation It encourages capital formation. v . Fund Raiser for Government It enables Government to raise funds for undertaking projects through sale of securities on the stock exchange. Thus stock exchange serves as a platform for raising public debt.