The Advantages Of Stocks &Nbsp; The Role Of Stocks.

1. advantages of listed companies

(1)

(2) after the listing of shares, the shares of listed companies are scattered in the hands of thousands of investors of different sizes. This decentralization of shares can effectively avoid the risk of a company being controlled by minority shareholders and give the company greater freedom of operation.

(3) the stock exchange has played an advertising effect on the listed companies' stock quotations and regular accounting forms, effectively expanding the popularity of listed companies and improving the credibility of listed companies.

(4) the direct effect of sovereign decentralization and capital popularization of listed companies is to increase the number of shareholders. These huge numbers of shareholders and their relatives and friends will naturally buy products of listed companies and become customers of listed companies.

(5) more shareholders can be sought.

Listed companies generally attach great importance to this, because more stocks mean more consumers, which is conducive to the improvement of public relations and the diversification of owners, and also has a strong effect on the company's advertising.

(6) beneficial to company stock

(7) a listed company can issue securities publicly, or issue new shares to its original shareholders.

(8) in order to encourage the establishment of capital market and the formation of capital accumulation, tax reduction and preferential treatment are generally given to listed companies.

Of course, not all big companies are willing to list their stocks on the stock exchange.

There are many such large companies in the United States, which are not unable to meet the requirements of the stock exchange listing, but are reluctant to be restricted by the securities and Exchange Commission's listing of securities.

For example, most stock exchanges stipulate that companies listed in their institutions must regularly announce their financial status, and some companies are not listed on the exchanges for that reason.

2. benefits for investors

(1) listing on the stock market provides continuity for stocks.

(2) it is beneficial to obtain the information about the operation and finance of the listed companies, understand the current situation of the company, and make the correct investment decision.

(3) the sale and purchase of listed stocks must be subject to competition between buyers and sellers. Only when the purchase price and the selling price are agreed, can the paction be concluded, so the paction price in the stock exchange is much more reasonable than that in the OTC market.

(4) the stock exchange quickly announces the trading quotas of listed stocks by means of the media.

In this way, investors can understand the trend of market price change as a reference for investment decisions.

(5) the stock exchange has a uniform standard for the commission paid by brokers.