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It’s a pretty vague question, but because people want to buy and sell things and they need to find other people to take the other side of the trade. It’s the same principle as a farmer’s market, but with securities instead of food.
It speeds up the process. It would be a pain if you yourself had to go find someone to buy your ownership of a company. However, you just let the stock exchange know that you want to sell, and they find someone who wants to buy. That’s only one small aspect of financial intermediaries, however. The bond market actually makes up way more than stocks. They connect people more quickly and easily than if they were doing it themselves.
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