Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.
Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.
(a) Pricing of security.
(b) Providing liquidity and marketability to existing securities.
(c) Spreading of the equity cult.
(d) Providing scope for speculation.
Answer (b) Providing liquidity and marketability to existing securities.
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. Stock exchanges provide liquidity and marketability to existing securities such as shares, stocks, and bonds.
(a) Pricing of security.
(b) Providing liquidity and marketability to existing securities.
(c) Spreading of the equity cult.
(d) Providing scope for speculation.
Answer (b) Providing liquidity and marketability to existing securities.
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. Stock exchanges provide liquidity and marketability to existing securities such as shares, stocks, and bonds.
