What are the benefits of stock exchange?

Answer 1

The stock exchange, or better known as the equities market, is a place where buyers and sellers trade shares of corporations. The advantage and benefits of trading in this type of capital market is that you can have very good returns. Over the past 5 decades, the US equities market has had a compounded annual growth rate of 12%. This is much higher than what you can earn from a fixed-income investment which can yield roughly 5%. It is also very easy to trade in a stock exchange since there are so many brokers available (traditional or online) at a very low cost. You can instantly see the results of your investment by the minute as the stock price moves.