Meaning and Importance of Stock Exchange in Agriculture

Stock Exchange in Agriculture

Meaning of Stock and Shares

The word “stock” is used to describe a collection of shares. The capital that a company gets when it sells shares. Stocks are issued in smaller amounts.

A share is a piece of financial documentation that shows you own a piece of a company. They are bought and sold as a unit.

Meaning and Importance of Stock Exchange in Agriculture


What is Stock exchange?

A stock exchange is an organization or market that allows stock brokers and traders to buy and sell stocks and other securities. Simply put, it is a place where shares are bought and sold. People buy and sell stocks and other assets.

On the stock market, you can buy and sell bonds, units of trust, derivatives, pooled investment products, and company shares. A security must be listed and accepted by the Nigerian Exchange Group, known as the governing body of the stock exchange, before it can be traded on the stock exchange.


People Involved In Stock Exchange

1. Stock Brokers Or Representatives

These are people who buy and sell stocks and bonds on behalf of the public. They act as agents for people who want to buy or sell securities.

2. Buyers And Sellers

They buy and sell securities on their own using brokers who act as their middlemen. Most of the time, the selling price is high.

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3. Buyers

People in the general public are ready to buy stocks from any company that is lured into the stock exchange market.

4. Sellers

They are regular people who want to sell their securities to people who want to buy them.

5. Farmers Agent

They are also known as “jobbers” because they buy from brokers at a cheaper price and sell back to them when the price goes up. This is how they make money.


Importance Of Stock Exchange In Agriculture

The stock market is important to the business of a country in many ways. It helps the agriculture industry grow, especially for big farmers. There are also other advantages, especially in farming. Among these are:

  1. When a farmer buys shares, he or she gets money that can be used to start up fresh ventures and grow the farm business.
  2. It promotes contract farming by letting people buy shares in a farm corporation and share dividends or profits.
  3. The stock exchange can be a means to share information between farmers
  4. Shareholders get rewards: Shareholders get a good return on their money by getting bonus shares or rewards.
  5. Investment Opportunities: These are made for people with less money to invest. Stocks can be bought and sold by both big and small buyers. Each person can buy as many shares as he or she can afford.
  6. The stock market decides how much shares, stock, and other securities are worth.



Stock is a group of shares put together as a whole. Shares, on the other hand, are financial instrument that shows you own a piece of an enterprise  or organization. They are bought and sold as a unit.

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Shares of stock and other securities are traded on the Stock Exchange.

People who take part in the stock market include buyers, sellers, farmers’ agents, stock brokers, etc.