Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following is an importance of stock exchanges? |
Stock exchange accelerates the process of capital formation. It enables government to raise public debt easily and quickly. It acts as a barometer of the economic situation/conditions and is thus referred as pulse of economy or economic mirror. All of the above |
| All of the above |
| Stock exchange performs a number of functions in respect of marketability of different types of securities for investors and borrowing companies. It is important functions are: Intensifying capital formation: Stock exchange accelerates the process of capital formation through creating the habit of saving, investing and risk taking among the investing class by converting their savings into profitable, safe investments. Facilitates public borrowing: Stock exchange serves as a platform for marketing government securities. It enables government to raise public debt easily and quickly. Serves as economic barometer: Stock exchange indicates the state of health of companies and the national economy. It acts as a barometer of the economic situation/conditions and is thus referred as pulse of economy or economic mirror. |
