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Question : Which feature of capital market is highlighted in the given statement?
Statement: security which is not actively traded may not easily find a buyer.

Option 1: Long term securities

Option 2: Long term financing requirement

Option 3: Creating liquidity

Option 4: None of the above 


 


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Creating liquidity


Solution : The chief function of the capital market is to provide platform for the sale and purchase of securities, therefore this market helps in creating liquidity in securities however a security not actively traded may not easily find a buyer.

Hence, option C is correct.

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