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There are various features of a stock exchange. They are given below:

1. Market for Securities: Stock exchange is a market, where securities of corporate bodies, government companies are bought and sold. 

2. Deals in Second Hand Securities: It deals with shares, debentures bonds and securities already issued by the companies. 

3. Regulates Trade in Securities: Stock exchange does not buy or sell any securities on its own account. It regulates the trade activities so as to ensure free and fair trade. 

4. Allows Dealings only in Listed Securities: In the stock exchange only listed securities are purchased and sold. Unlisted securities cannot be traded in the stock exchange.

5. Association of Persons: A stock exchange is an association of persons or body of individuals which may be registered or unregistered.

Correct option: (b) Securities

(a) Market Quotations

A pessimistic speculator is Bear.

(b) For their Own Transactions

(b) Bombay Stock Exchange

Correct option: (b) bear

The benefits of Stock Exchange are classified into benefits to the Community, Company and Investors. 

Benefits to the Community:

1. Economic Development: It increases the economic development by ensuring steady flow of savings for production. 

2. Fund Raising Platform: It enables the wellmanaged companies to raise funds by issue of shares.

Benefits to the Company:

1. Enhances Goodwill or Reputation: Companies whose shares are quoted on a stock exchange enjoy greater goodwill and credit standing. 

2. Raises huge funds: Stock exchange helps the companies to raise huge funds by issue of shares and debentures.

Benefits to Investors: 

1. Liquidity: Stock exchange helps to convert his shares into cash quickly. 

2. Investor protection: The stock exchange safeguards, investor’s interest by following strict rules and regulations.

1. BSE

2. Bear

3. broker

4. National Stock Exchange

Correct option: (a) Jobber

It is a note given by a broker to his client in a specific form, validating the transaction. Its copy comes immediately to both after the transaction within 24 hours.

A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his name.

Bear (Mandiwala) is a pessimistic speculator who expects a fall in the price of a security, so he sells his securities at prevailing prices to avoid loss as he anticipates further fall in prices. His action leads to lowering prices as there is an excess of sales over the purchase.

Bull (Tejiwala) is an optimistic speculator who expects the price of a share to rise in the future and buys with the hope of selling at a high price to earn profit.

A bear is a speculator who expects the prices of shares to fall in the future and sells his securities at the prevailing prices to avoid loss.

A lame-duck is a bear broker whose expectations have gone wrong and makes a loss in his dealings.

He is a member of the stock exchange and is licensed by the stock exchange to buy or sell shares on his client’s behalf. He is an agent between the investors and Jobber and earns his income in the form of commission or brokerage.

Sensex is the index of the BSE which represents the increase or decrease in prices of stocks of a selected group of companies.

Stock Exchange is a specific place where various types of securities are purchased and sold. The term securities include equity shares, preference shares, debentures, government securities, and bonds, etc. including units of mutual funds. They act as intermediaries between investors and borrowers, to provide safety and stability to the investors, stock exchanges in India are regulated by SEBI.

(a) If BDI bank wants to offer DP services, they should approach the concerned Depository for registering themselves.

(b) If KM Financial wants to offer Debenture Trustee services then they should be registered with SEBI to act as Debenture Trustee.

(c) The entire IPO process is regulated by SEBI, TT Ltd. Co should register with The U. S. Securities and Exchange Commission (SEC) which ensures that the company has made disclosures in detail thus TT Ltd will get the green signal to issue IPO.

The trading of shares that takes place during trading hours on the floor of the stock exchange is called the Trade Ring.

A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his own name. He buys securities as an owner and sells them at a higher price, and cannot deal with investors directly.

A Bull is a speculator who is optimistic, expects the price of a share to rise in the future, and buys with the hope of selling them at higher prices to earn profit. A bull’s action leads to higher prices for securities as there is an excess purchase over sales.

• The stock exchange is a specific place where the trading of securities is arranged in an organized method.
• The stock exchanges help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization in India.
• It helps in raising medium-term capital as well as long-term capital for the development and expansion of the companies in the Indian economy.
• New industries and commercial enterprises can easily acquire capital funds for economic growth.
• It reflects a healthy financial and investment conducive atmosphere in the economy. It stimulates investment in the productive sector which accelerates the process of economic development of the nation.
• Thus, it is rightly said that the stock exchanges work for the growth of the Indian economy.