Question : Assertion: A stock exchange provides a platform for the secondary market trading of securities.
Reason: The primary function of a stock exchange is to issue new securities to the public.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false
The assertion is true. A stock exchange does provide a platform for the secondary market trading of securities, where existing (previously issued) securities are bought and sold among investors.
The reason is false. The primary function of a stock exchange is not to issue new securities to the public; rather, it is to facilitate the trading of existing securities in the secondary market. The issuance of new securities to the public is typically done through the primary market, such as through an initial public offering (IPO).
Related Questions
Trending Articles/News
