Question

Which of the following is not a protective function of the stock exchange?

• A. Controlling insider trading.
• B. Promotion of fair practices and code of conduct in the securities market.
• C. Regulation of takeover bids by companies.
• D. Prohibition of fraudulent and unfair trade practices.

Answer 1

The correct option is C

Regulation of takeover bids by companies.

Answer (c) Regulation of takeover bids by companies.

Explanation: A stock exchange, bourse, or securities exchange is a trade where traders and stockbrokers can sell and buy securities, like shares or bonds, stock, and other monetary instruments. Stock exchanges may likewise give facilities for the redemption and issue of instruments, securities, and capital events like paying dividends and income. Regulation of takeover bids by companies is not a protective function of the stock exchange.