"Role of Stock Exchange" is an informative chapter that provides readers with an in-depth understanding of the significance and functions of stock exchanges in the financial market. The chapter begins with an introduction to stock exchanges, explaining their purpose and importance in the financial market. It highlights the role of stock exchanges as centralized platforms where buyers and sellers come together to trade securities, such as stocks and bonds.

Readers are introduced to the crucial role stock exchanges play in price discovery. The chapter explains how stock exchanges provide real-time information on the supply and demand for securities, leading to the determination of market prices. Readers will gain insights into the factors influencing stock prices and how price discovery contributes to market efficiency.

The chapter highlights the role of stock exchanges in ensuring investor protection and market integrity. It discusses the regulatory framework and listing requirements imposed by stock exchanges to maintain fair and transparent trading practices. Readers will gain an understanding of the importance of investor confidence and the measures taken by stock exchanges to safeguard the interests of investors.

By the end of this chapter, readers will have gained a comprehensive understanding of the role of stock exchanges in the financial market. They will be equipped with knowledge about the functions of stock exchanges in facilitating trading, price discovery, capital formation, investor protection, and promoting market efficiency. Whether readers are new to investing or seeking to deepen their understanding of stock exchanges, this chapter provides valuable insights into the pivotal role they play in the financial ecosystem.