Stock market intermediaries & functions

1. STOCK MARKET
INTERMEDIARIES &
FUNCTIONS

2. STOCK MARKET
 Place 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

3. INTERMEDIARIES
 Stock brokers
 Share transfer agents
 Trustees of trust deeds
 Registrars to an issue
 Merchant bankers
 Underwriters
 Custodians
 Credit rating agencies

4. FUNCTIONS
 Provides Liquidity & Marketability to
investment in securities
 Channelize the savings into corporate
enterprise & productive venture
 Indicate the market price of securities,
barometer to the economy
 Ensures transparency in security
transactions