Stock exchange leads to _________ as prices of securities with a variable return continue to increase over long term.

pricing of securities

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liquidity

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spreading of equity cult

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capital formation

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Solution

The correct option is D capital formation
Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over long term. Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange provides services like, wide dissemination of prices of securities.

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