1.

Write any four advantages of Electronic Trading System in stock exchanges.

Answer»

Electronic trading systems or screen-based trading has the following advantages: 

1. It ensures transparency as it allows participants to see the prices of securities in the market while business is being transacted. They are able to see the full market during real-time. 

2. It increases efficiency of information being passed on, thus helping in fixing prices efficiently. The computer screens display information on prices and also capital market developments that influence share prices. 

3. It increases the efficiency of operations since there is reduction in time cost and risk of error. 

4. People from all over the country and even abroad who wish to participate in the stock market can buy or sell securities through brokers or members without knowing each other. This system has enabled a large number of participants to trade with each other, thereby improving the liquidity of the market.



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