Question:
Choose the incorrect statement from the following about functions of a Stock Exchange:
Choose the incorrect statement from the following about functions of a Stock Exchange:
Updated On: Jan 13, 2026
- Provides liquidity and marketability to new securities
- Ensures safety of transactions
- Contributes to economic growth
- Provides scope for speculation
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The Correct Option is A
Solution and Explanation
Step 1: Stock exchanges provide liquidity and marketability to existing securities, not new securities. New securities are introduced in the primary market.
Step 2: Thus, the statement that stock exchanges provide liquidity to new securities is incorrect.
Thus, the correct answer is option A.
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