Assertion: Stock exchanges control the activities of brokers and protect the investors from being deceived.
Reasoning: If any broker is found indulging in malpractices as overcharging or giving wrong information, his/her licence may be cancelled by the stock exchange.
Answer & explanation
Correct answer: option 2
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Stock exchanges control the activities of brokers and protect the investors from being deceived. Now, if any broker is found indulging in malpractices as overcharging or giving wrong information, his/her licence may be cancelled.