The entity called Stock Exchange provides the trading facilities to traders and stock brokers.
They trade stocks and other securities and also avail the provision of redemption and issuing of the securities as well.
The securities that is traded on the stock exchange are shares, unit trusts, and bonds.
And it demands to be listed in the market to trade a security on a specific stock exchange.
Generally, few central locations takes the charge of record keeping which does not have any link with trading.
This is due to the emergence of modern share market that is transformed into an electronic network.
This provides them a speedy transaction.
But this is done by the members only.
Australian Stock Exchange- Benefits of being listed Among many benefits the primary benefits of listing in ASX is to gain an ideal way to raise funds.
And this ideally means to go public.
In the case where you lack the funds or capital for your potential company which you think can achieve success with its prospective strategies in the near future, you can opt for going to the public.
And the offered share would help you to raise the money from the public which is also known as Initial Public Offering.
Besides when you sell all the shares and meet all the requirements, you will get all the funds in the place of your shares.
And this consequently implies that you don't officially own entirely your company but it shares it's ownership by the shareholders as well.
In addition, the other benefit is that the companies that gets listed on ASX gets the attention of public as well as the media.
This medium profitably promotes your brand and build up the recognition across the country in a day.
Moreover, the shares tends to rise or fall depending on the price of your companies performance and gains.
Therefore, making your company to work progressively will eventually land you up in a colossal income.
Some drawbacks With these above mentioned benefits, there are also some drawbacks attached for your company going public.
The first one is that your company will no more have the sole ownership and shall be shared by the shareholders.
They can exploit their right of voting, selling of the shares etc.
And if your performance is not up to par, they holds the authority to make your company's share price go down.
Hence, now you have to work for the contention of your shareholders.