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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


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 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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