Question:
"The stock exchange performs many vital functions in today's commerical world". Explain any four such functions.
"The stock exchange performs many vital functions in today's commerical world". Explain any four such functions.
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The stock exchange is the heart of the capital market, ensuring investment safety and economic progress.
Updated On: Jul 14, 2025
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Solution and Explanation
- Providing Liquidity and Marketability: Stock exchanges allow investors to convert securities into cash easily.
- Pricing of Securities: Prices are determined through market demand and supply mechanisms.
- Safety of Transaction: Trading under regulatory frameworks ensures transparency and protects investor interests.
- Contributes to Economic Growth: By channelizing savings into productive investments, stock exchanges aid capital formation.
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