Before we go on to discuss equity markets, let us discuss the role that equity markets play in the economy. We shall use the term stock market and stock exchange interchangeably. What does a stock exchange do? It provides the regulation of company listings, a price formation mechanism, the supervision of trading, authorisation of members, settlement of transactions and publication of... https://www.expertsmind.com/topic/debt-and-equity-as-means-of-raising-finance/debt-ratio-and-cash-flow-coverage-92692.aspx