question archive With example, EXPLAIN that, Is stock exchange a regulator of financial markets? How does a stock exchange protect the interest of investors?
With example, EXPLAIN that, Is stock exchange a regulator of financial markets? How does a stock exchange protect the interest of investors?
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With example, EXPLAIN that,
Is stock exchange a regulator of financial markets? How does a stock exchange protect the interest of investors?
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A stock exchange acts as a market, where it connects buyers with sellers. It although is not the regulator body of Financial markets. There will be a financial regulatory authority, like SEBI in India which eventually regulate the financial markets.
Exchanges ensure that trading occurs in an orderly and fair manner.
The exchange will be responsible for fairly tracking the stock flows which will establish the stock price in a fair manner.
The exchange is responsible for setting fair prices, executing orders in a fair manner, providing receipts for those transactions in order to ensure the investors are protected.
