Stock exchange acts as a regulator of the securities market. It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. It also ensures wider share of ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investements.
Various functions performed by the Stock Exchanged are discussed in the above para. By quoting lines from the above para, state any four functions, of stock exchange

Explanation

Functions of stock exchange discussed are:
(i) Provides liquidity and marketability to existing securities: "It creates a continuous.... Reinvest".
(ii) Safety of transactions: "To ensure that legal framework".
(iii) Contributes to economic growth: "Through this process.... investment avenues."
(i) Spreading equity cult: "It also ensures..... about investments.