Question : Statement 1: A stockbroker facilitates the trading of securities.
Statement 2: A stockbroker is only responsible for issuing new securities in the primary market.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer:
Statement 1 is true, but statement 2 is false.
Solution : The correct answer is (b) Statement 1 is true, but statement 2 is false.
Statement 1is true. A stockbroker is an individual or firm that is licensed to buy and sell securities on a stock exchange. They facilitate the trading of various securities (stocks, bonds, etc.) by acting as intermediaries between buyers and sellers.
Statement 2 is false. Stockbrokers are involved in both the primary and secondary markets. In the primary market, they may assist in the process of issuing new securities, but they are primarily known for facilitating the trading of existing securities in the secondary market.
