"valuation provides important instant information to both buyer and sellers". Identify the function of stock exchnage :

Pricing of securities

The correct answer is option (4) : Pricing of securities

"Valuation provides important instant information to both buyer and sellers" is:

• (4) Pricing of securities

The stock exchange provides a platform where securities such as stocks and bonds are bought and sold. Through the trading activities on the stock exchange, the pricing of securities is determined based on the supply and demand dynamics, providing important instant information to both buyers and sellers regarding the valuation of the securities.

1. Safety of transaction: The stock exchange provides a secure and regulated platform for the buying and selling of securities, ensuring that transactions are conducted in a fair and transparent manner.

2. Provides liquidity : It offers liquidity to investors by providing a market where they can buy or sell securities with ease. This liquidity allows investors to convert their investment into cash quickly.

3. Scope for speculation : The stock exchange provides an environment where investors can speculate on the future prices of securities, allowing them to potentially profit from price movements.

4. Pricing of securities : The stock exchange determines the prices of securities based on supply and demand dynamics, providing important information to both buyers and sellers regarding the valuation of the securities.