Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

From the following, identify the functions of stock exchange which facilitate the spread of conducive climate for share ownership.

A. Regulation of takeover bids by Companies

B. Pricing of Securities

C. Safety of Transactions

D. Training of intermediaries of the securities market

E.  Spreading of equity cult

Choose the correct answer from the options given below

Options:

B, C and D only

   A, B and D only

C, D and only

 B, C and E only

Correct Answer:

 B, C and E only

Explanation:

The efficient functioning of a stock exchange creates a conducive climate for an active and growing primary market for new issues. An active and healthy secondary market in existing securities leads to positive environment among investors. The following are some of the important functions of a stock exchange.

  1. Providing Liquidity and Marketability to Existing Securities.
  2. Pricing of Securities.
  3. Safety of Transaction
  4. Contributes to Economic Growth
  5. Spreading of Equity Cult
  6. Providing Scope for Speculation