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Question : Case Study 33

XYZ Corporation is a well-established company with shares traded on a stock exchange. The company's management is reviewing the functions of a stock exchange.

Question : 

What is the primary function of a stock exchange?

Option 1: Issuing new shares
 

Option 2: Regulating credit rating agencies
 

Option 3: Facilitating trading of securities

 

Option 4: Setting interest rates


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Facilitating trading of securities


Solution : The correct answer is (c) Facilitating trading of securities

The primary function of a stock exchange is facilitating trading of securities. A stock exchange is a platform where buyers and sellers can trade shares of publicly-held companies. It provides a centralized marketplace for participants to buy and sell financial instruments such as stocks, bonds, and other securities. The exchange facilitates fair and transparent trading, ensuring efficient price discovery and liquidity in the market.

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