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Profit sharing: They help both casual and professional stock investors, to get their 
share in the wealth of profitable businesses. 
Maintainance of liquidity: The bank and insurance companies purchase large 
number of securities from the stock exchange. These securities are marketable 
and can be turned into cash at any time. Therefore banks prefer to keep securities 
instead of cash in their reserve . This it facilities the banking system to maintain 
liquidity by procuring the marketable securities

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Non bezati presentation

  • 1. Profit sharing: They help both casual and professional stock investors, to get their share in the wealth of profitable businesses. Maintainance of liquidity: The bank and insurance companies purchase large number of securities from the stock exchange. These securities are marketable and can be turned into cash at any time. Therefore banks prefer to keep securities instead of cash in their reserve . This it facilities the banking system to maintain liquidity by procuring the marketable securities