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Question
What are the functions of a stock exchange?
What are the functions of a stock exchange?
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Solution
Functions of a stock exchange are :
(i) It provides liquidity and marketability to the existing securities.
(ii) Share prices are determined by stock exchange by the forces of demand and supply.
(iii) It ensures that the investing public gets a safe and fair deal.
(iv) Through the process of disinvestment and reinvestment, they channelize savings into the most productive use.
Functions of a stock exchange are :
(i) It provides liquidity and marketability to the existing securities.
(ii) Share prices are determined by stock exchange by the forces of demand and supply.
(iii) It ensures that the investing public gets a safe and fair deal.
(iv) Through the process of disinvestment and reinvestment, they channelize savings into the most productive use.
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