Which of the following is a function of the stock exchange?
A. Providing liquidity and marketability to existing securities
B. Spreading of equity cult
C. Contributing to economic growth
D. All of the above
Answer:D
Which of the following is a function of the stock exchange?
A. Providing liquidity and marketability to existing securities B. Spreading of equity cult C. Contributing to economic growth D. All of the above
Explanation: Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. In stock exchange securities of various companies are bought and sold. This process of disinvestment and reinvestment helps to invest in most productive investment proposal and this leads to capital formation and economic growth.