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STOCK MARKET INTERMEDIARIES & FUNCTIONS
STOCK MARKETPlace where shares of pubic
listed companies are traded. Primary market - companies float
shares to the general public in an IPO to raise capital.
Secondary market – where securities are traded after the company has sold all the stocks offered on primary market
INTERMEDIARIESStock brokers Share transfer agentsTrustees of trust deedsRegistrars to an issueMerchant bankersUnderwritersCustodiansCredit rating agencies
FUNCTIONSProvides Liquidity & Marketability
to investment in securitiesChannelize the savings into
corporate enterprise & productive venture
Indicate the market price of securities, barometer to the economy
Ensures transparency in security transactions
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