Role of stocks

1. Benefits to listed companies

(1) After the stock market is listed, the listed company becomes the target of investing in the public, so it is easy to absorb the savings of the investing public and expand the source of financing.

(2) After a stock is listed, the equity of a listed company is distributed in the hands of thousands of investors of different sizes. This decentralization can effectively avoid the danger that the company is independently dominated by minority shareholders, give the company more freedom to operate.

(3) The Stock Exchange's announcement on the stock quotations and regular accounting forms of listed companies has played an advertising effect, effectively expanding the visibility of listed companies and increasing the reputation of listed companies.

(4) the direct effect of the scattered sovereignty of listed companies and the popularization of capital is to greatly increase the number of shareholders. These large numbers of shareholders and their friends and family will naturally purchase products of listed companies, become a customer of a listed company.

(5) More shareholders can be sought. Listed companies generally pay great attention to this because a large number of stocks mean a large number of consumers, which facilitates the improvement of public relations and the diversification of owners, and also strengthens the company's advertising.

(6) determine the company's stock price.

(7) A listed company can issue securities in public and issue new shares to its original shareholders. In this way, the listed company has a sufficient source of funds.

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

Of course, not all major companies are willing to list their shares on the exchange. There are many such large companies in the United States that do not meet the exchange's conditions for listing their shares, but are reluctant to be subject to the Securities and Exchange Commission's restrictions on listing their shares. For example, most stock exchanges stipulate that companies listed on the stock exchange must publish their financial status on a regular basis, and some companies are not listed on the stock exchange for this reason.

2. Benefits to investors

(1) listing and listing provides a continuous market for the stock, which facilitates the stock circulation. The better the circulation of securities, the more investors are willing to buy. However, the circulation of stock listed on the exchange is not as good as that of stock listed on the OTC market. A major reason why most stocks are circulating off the market.

(2) It is conducive to obtaining the operating and financial information of listed companies, understanding the current situation of the company, and making correct investment decisions.

(3) The purchase and sale of listed shares must be subject to competition from the buyer and the seller. The deal can be made only when the purchase and sale prices are the same, therefore, the transaction price in the stock exchange is far more reasonable than that in the OTC market.

(4) The stock exchange uses the media to quickly announce the stock market. In this way, investors can understand the trend of market price changes and serve as a reference for investment decision-making.

(5) The Stock Exchange has a unified standard on the Commission received by brokers, so that young people are not bullied.