Which of the following is the basic function of stock exchange?

Pricing of Securities

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Safety of Transaction

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Contributes to Economic Growth

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Providing Liquidity and Marketability to Existing Securities.

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Solution

The correct option is D Providing Liquidity and Marketability to Existing Securities.
Basic function of stock exchange are providing Liquidity and Marketability to existing securities. Stock exchange can be defined as an association, organization or body of individuals whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.

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