1.

Explain the functions of Stock Exchange.

Answer»
  • Ready and Continuous Market: Stock exchange helps the investors to sell his securities easily. And also he can convert his cash into securities.
  • Correct Evaluation of Securities: The prices at which securities are bought and sold are recorded and informed to the public. These prices are called “market quotations”.
  • Protection to Investors: All dealings in a stock exchange are in accordance with well-defined rules and regulations. Any malpractice will be severely punished.
  • Proper Channelisation of Capital: People like to invest in the shares of companies which yield good profits. Also people invest in the companies which are giving good dividends.
  • Facilities for Speculation: Speculation is an integral part of stock exchange operations. As a result of speculation, demand for and supply of securities are equalized.


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