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.
Question : It provide valuable information about securities being traded in the market. Which function of financial market is highlighted in the given statement?
Option 1: Mobilization of savings and channeling them into the most productive uses.
Option 2: Facilitating price discovery
Option 3: Providing liquidity to financial assets
Option 4: Reducing the cost of transactions
Question : Case Study 33
XYZ Corporation is a well-established company with shares traded on a stock exchange. The company's management is reviewing the functions of a stock exchange.
Question :
What is the secondary function of a stock exchange that ensures a continuous market for securities?
Option 1: Allocation of resources
Option 2: Regulation of insider trading
Option 3: Providing loans to companies
Option 4: Providing credit rating to companies
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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile