(i) It enables the investor who wishes to have money instead of shares to sell the shares at a fair’ price for those shares on that day.
(ii) It rigorously scrutinizes companies which apply for a ‘quotation.’ Before their shares can be bought and sold on the Exchange, the Council will check that the assets and profits represent a worthwhile investment, and that its directors and officials are not undesirable people.
(iii) It enables the investor who wishes to buy stocks or shares to secure them at a fair’ market price, i.e. the price that is generally believed to be the proper value of that share on that day.
(iv) It protects the investor from sharp practices and unscrupulous operators by establishing a code of conduct which ensures fair play between the public and the operators on the market. It does not hesitate to discipline those who use its facilities and fail to follow its code.
(v) It runs its own compensation fund, contributed by the members, so that where a firm is unable to honour its bargains and is hammered,’ the clients of the defaulting firm protected.