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
Answer (1)
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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