Disadvantages of Stock Exchange

1. Unproductive Speculation:

The speculation is a tool of stock exchange market. The capital is misdirected towards unproductive activities. The prices of shares are manipulated to earn undue advantage

2.Reliability of Members:

The stock exchange members have divided loyalty since they may be trading in their own account and yet executing the customer’s orders.

3. Fictitious Position:

The price quotations do not always show fictitious position of investment

due to excessive speculations. The role of bulls and bears upsets the price level at

any time during working hours

4. Price Exploitation:

The stock exchange market is not always free from price manipulations like

pool operations do occur. The members Dfa Ho can pool their resources to earn undue

profits.

Inflated Prices:

The general public inflates share prices during boom period due to misinformation. The information about company matters is not available