Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Which of the following is NOT a function of Stock Exchange.

Options:

Spreading Equity Cult

Pricing of Securities

Facilitating a company to get a Loan from Bank

Exchange of Securities

Correct Answer:

Facilitating a company to get a Loan from Bank

Explanation:

The correct answer is option (3) : Facilitating a company to get a Loan from Bank

The function of a stock exchange is primarily related to the buying and selling of financial instruments such as stocks, bonds, and derivatives. It serves as a marketplace where investors can trade these securities. Among the options you provided, the function that is NOT typically associated with a stock exchange is:

(3) Facilitating a company to get a Loan from Bank

  • While a stock exchange indirectly influences a company's ability to access capital through the issuance of shares and other financial instruments, it is not directly involved in providing loans to companies. Instead, companies can raise capital by issuing stocks or bonds on the stock exchange, and investors can then purchase these securities, providing companies with the necessary funds.