Question : Which function of stock exchange is highlighted in the given statement?
Statement: It is a market place where previously issued securities are traded.
Option 1: Providing liquidity and marketablity to existing securities
Option 2: Pricing of securities
Option 3: Safety of transactions
Option 4: Contributes to economic growth
Correct Answer: Providing liquidity and marketablity to existing securities
Solution :
Providing liquidity and marketablity to existing securities
Stock exchange market place where previously should secured is a traded various types of secureties are traded hair on regular basis. Whenever required and investor can invest is money through his market into security and can recovery this investment into cash. Availability of redeem market for sale and purchase of securities increases their market ability and enhance liquidity.
Hence, option A is correct.
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