Question:

"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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