Why haven't top giant exchanges like Binance or FTX implement Stock investments too?
Why haven't looked at what FTX is offering before wondering why they don't?
https://ftx.com/markets > click on tokenized stocks.
But volumes are quite low and for some almost inexistent and I don't think those tokenized stocks will ever catch on to the usual crypto base, and this is one reason we don't have more of them aside from regulations so that answers 3 of your questions.
It's definitely smarter than buying loads of altcoin within a highly correlated market in a bid to diversify your investments.
That's one thing I never understood, people think they are diversifying their investment when buying
BTC / ETH or LTC when in reality is like they are buying Exxon, Royal Dutch, and Chevron shares and claiming they have diversified portfolios.
In addition to that, if you're doing crypto trading on a CEX, why isk another part of your funds on the same CEX and not use another platform to trade stocks, if you put literally all your money in one basket if that exchange goes down so do all your investments.