Question

From the following, identify the one which is not a function of stock exchange:

• A. Providing liquidity and marketability to existing securities
• B. Spreading of equity cult
• C. Ensuring safety of transactions
• D. Ensuring that there is no scope for speculation

Hint:

Stock exchanges regulate and reduce risk but cannot eliminate speculation completely.

Answer 1

The Correct Option is D

While stock exchanges perform several roles such as ensuring transparency, providing liquidity, and spreading equity culture, eliminating speculation entirely is not possible. In fact, some level of speculation is inherent in stock trading. Thus, option (D) does not represent a function of stock exchange.
Final Answer: (D) Ensuring that there is no scope for speculation