Practicing Success
Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange. |
Providing scope for speculation Providing liquidity and marketability to existing securities Pricing of security Spreading of the equity cult |
Providing liquidity and marketability to existing securities |
Providing Liquidity and Market ability to Existing Securities: The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. It gives investors the chance to disinvest and reinvest. This provides both liquidity and easy marketability to already existing securities in the market. |