Question : Which feature of capital market is highlighted in the given statement?
Statement: The chief function of the capital market is to provide a platform for the sale and purchase of securities.
Option 1: Creating liquidity
Option 2: Capital formation
Option 3: Trade off functions
Option 4: None of the above
Correct Answer: Creating liquidity
Solution : Capital market helps in creating liquidity.The chief function of the capital market is to provide a platform for the sale and purchase of securities. Therefore this market helps in creating liquidity in securities.
Hence, option A is correct.