1. It gives people a chance to buy shares hence distribution of wealth in economy.
2. Enable investors realize their investments through disposal of securities.
3. Increases diversification of investments
4. Improves corporate governance through separation of ownership and management. This increases higher standards of accounting, resource management and transparency.
5. Privatisation of parastatals e.g. Kenya Airways. This gives individuals a chance for ownership in large companies.
6. Parameter for health economy and companies
7. Provides investment opportunities for companies and small investors.