The benefits that enjoyed by investors due to existence of organized security exchanges
e.g. Nairobi Stock Market are:
– The firms are able to issue new shares and raise capital easily
– The exchange is a vehicle of mobilizing savings in the economy
– Since investors can buy new shares, this enable them to diversify their investments and reduce risk
– It is a means through which foreign direct investment (FOI) can flow into the economy
– Investors are able to know the price of their securities as determined by demand and supply forces in the stock exchange.
Explain the benefits that are enjoyed by investors because of the existence of organized security exchanges.
