Role of stock exchanges

• Stock exchanges help companies raise capital (Primary Market)

• Enable the shares to be traded among public (secondary market)

• Make sure the companies follow the rules and regulations of the stock market regulators (In India, the regulator is SEBI - Securities and Exchanges Board of India)
• It collects all information from the listed companies like change in executive committee, mergers and acquisitions and communicate it public so that the information is spread all over equally.(These information can influence the price of the shares)

• They charge a listing fee for the companies and monitor them for the proper functioning. In case they break the rule. heavy penalty will be imposed on them