What is the Role of the Stock Exchange?

o The stock exchange admits companies for trading at their securities.
o It provides a market for raising capital by companies.
o It provides a market place for shares of listed public companies to be bought and sold, by bringing companies and investors together at one place.
o The exchange's role is to monitor the market to ensure that it is working efficiently, fairly and transparently.


What is Capital Growth? This is one of the ways in which shares differ from deposit accounts. The principal amount of money you put in a bank or any fixed income savings scheme always stays the same e.g. if you start with Rs.100,000 you will always have Rs.100,000 (other than any interest earned).changes in value according to the performance of the company. With good management, the value of your investment in shares of a company can grow over time so that your shares are worth more than you paid for them. This is capital growth.