To raise capital for development projects

Its helpful for Government to raise capital for development projects, infrastructure projects such as sewage and water treatment works or housing estatesIts serves as an economic Barometer , An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy..

Stock exchanges have multiple roles in the economy, this may include the following:

The Stock Exchange help companies to raise capital for expansion through selling shares to the investing public.They help in mobilizing savings for investment which in turn benefits for several economic sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and higher productivity levels.Companies can expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets.They help in Redistribution of wealth through stock price increases and dividends get a chance to share in the wealth of profitable businesses.They help to Create investment opportunities for small investors by enabling them to own shares of the companies as large investors, and to enjoy similar rates of return

A Stock Exchange Market Of Share

A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as, other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks