C. Benefits to Investors

C. Benefits to Investors i. Liquidity Stock exchange helps an investors to convert his shares into cash quickly and thus increases the liquidity of his investments. ii. Adding collateral value of security The fact that a security is dealt on a stock exchange makes it a good collateral security for obtaining loan from banks. iii. Investor protection The stock exchange safeguards, investor’s interest and ensures fair dealing by strictly enforcing its rules and regulations. iv. Assessing real worth of security An investor can easily assess the real worth of securities in his hands, as market quotations are published daily in the newspapers and in websites. v. Mechanism to trade security Stock Exchange provides a mechanism by which purchase and sale of listed securities take place in a matter of few minutes.