Question : Which of the following statement is incorrect?
Option 1: Stock exchange provide liquidity and marketablity of new securities
Option 2: Stock exchange provides safety of transaction
Option 3: Stock exchange provides sufficient scope within the provision of law for speculative activity
Option 4: None of the above
Answer (1)
21st Jan, 2024
Correct Answer:
Stock exchange provide liquidity and marketablity of new securities
Solution : The basic function of stock exchange is to provide a ready market for sale and purchase of existing securities. The presence of ready market provides liquidity and easy marketability as investments can be converted into cash as and when required.
Hence, option A is correct.
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