Main menu


Everything you need to know about Stock exchange And profits for the shareholders

 Everything you need to know about Stock exchange And profits for the shareholders

A stock market or stock exchange is a center where the traders buy and sell shares of different companies and for this the companies need to get their stock listed on the stock exchange. There are many who have its stock listed on a large number of stock exchanges and profits earned by the company are divided to its shareholders on the basis of the percent of shares acquisition. A renowned company generally gets its stock listed on some of the best exchanges across the world and people buy their shares for getting a part of the ownership of the company. Shares are the smaller part of the company which is floated for the people to buy and when an individual buys a share of the company it means that he owns a small part of that particular company. There are different things on which the prices of the shares are based but the most important thing that affects the price of the shares is the balance between the demand and supply. If there are a large number of traders who want to buy a particular stock then the price of the share goes up and if there are more sellers wanting to sell their share then the price of the shares goes down. 


Stock exchange and profits are generally associated with capitalism and wealth creation as it is a place not just for brokers for buying and selling shares of the companies but it also allows businesses a great access to capital. It also helps companies in enhancing the public image and visibility of the companies because the reputation in the stock exchange plays a very important role in determining the overall profitability of the company. As a savvy business owner you also have the option of harness the power of the stock exchanges for growing and enhancing their companies. Even though significant regulatory and financial costs are associated with being listed on the stock exchange, your company can get a large number of benefits by being listed on the stock exchanges. Stock exchange provides marketability and liquidity to the existing securities as it is a market places where the previously issues securities are traded. There are different types of securities that are traded in the stock exchange on a regular basis and investors can easily reconvert their investment into cash according to their needs. Affordable capital is of utmost important for the success of your business and when you get your company listed in the stock exchange, you can get easy access to capital. You can also issue more shares to the investors if you want more capital for your business which is done in the stock exchange and profits that your company earns is divided in between the shareholders according to their ownership. The capital that is raised from issuance of the shares can also be used for helping the company grow and for paying for the different business costs. Companies that are listed in the stock exchange have enhanced profile that means that the company is much more visible and recognizable as compared to its privately held counterparts. The increased visibility of the company comes from being listed on the stock exchange as it helps the company in attracting new customers and clients. 


Stock exchange can offer a large number of benefits for the company as the company with their stock listed in the exchange has the ability of attracting better employees. Thus high quality employees will be attracted to your company as you will have greater visibility and recognition. Hence your company can become a household name which also helps you to earn greater amount of profit so that you can be more successful than your competitors. Companies that are listed in the stock exchanges will have increased value as they will be valued higher as compared to their competitors and the higher valuation also help with retirement planning of the shareholders as the shares that they will reflect higher valuation. The increased valuation of the company also helps in offering lucrative share option packages to their employees. You can also be able to maintain control over your business as you will not have to rely on the other sources for getting capital for your business.