The stock market is a huge place and stock market indices are also available in it. While investing in the money in any company it is always remember that which index it belongs to. Instead from trading stocks of the company, it is possible to trade an index by buying and selling it in the same way you would an individual share.
There are several functions of stock market which you can get easily. A stock market index is always used to measure the change in the stock price of the component of the index. The functions of stock exchange are usually different from the stock market. You can easily thee indices to track the performance of the stock market. In the index any change in the price of the index is usually equal to the change in stock.
What are the different functions of the stock market?
- Promote saving and investment
People invest in different securities offered by many companies which help them to save their money and make investment because investing in these securities will give them more amount of profit.
- Contribution to economic growth
By purchasing and selling of the securities and shares company will get benefit and earn more economy which help to make more contribution in the economic growth.
- Safety of transaction
The companies who provide the services of trading in the stock market will also have best software and instrument which safety of the transaction to the people’s money. It is necessary to keep the datasafe and secure of every users.
- Provide scope for speculation
People invest in different securities and sell them when the get the maximum profit for their investment and keep them safe till the time they sell it and this provide the scope of speculation.
Many people in these days invest their money in the stock market and it coversa wide area which people gets maximum benefits and increases their profit rate from time to time.