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Market Place

The second important function discharged by stock markets/exchanges is that they provide a market place for the purchase and sale of securities, thereby enabling their free transfer ability through several successive stages from the original subscriber to the never ending stream of buyer who may be buying them today to sell them at a later date for a variety of considerations like meeting their own needs of liquidity, shuffling their investment portfolios to gear up for the ever changing market situations, and so on. Since the point of aggregate sale and purchase is centralized, with a multiplicity of buyers and sellers. It any point of time, by and large, a seller has a ready purchaser and a purchaser has a ready seller at a price which can be said to be competitive. This guarantees sale ability to one who has already invested and surety of purchase to the other who desires to investments.

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