Comment on the following statements: (c) 'Listing of securities with stock exchanges is a matter of great importance for companies and investors.'

The statement is true. Listing of securities with stock exchange is a matter of great importance for companies and investors, because this provides the liquidity to the securities in the market. The following benefits are available when securities are listed by a company in the stock exchange: Public image of the company is enhanced. The liquidity of the security is ensured making it easy to buy and sell the securities in the stock exchange. Tax concessions are made available both to the investors and the companies. Listing procedure compels company management to disclose important information to the investors enabling them to make crucial decisions with regard to keeping or disposing of such securities. Listed companies command better support such as loans and investments from Banks and FIs.