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प्रश्न
Explain any three functions of stock exchange.
'The Stock Exchange performs many vital functions in today's commercial world.' Explain any three such functions.
'Stock Exchange not only contributes to the economic growth but performs many other functions'. Explain any three such functions.
State any four functions of 'Stock Exchange.'
State any three functions of Stock Exchange.
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उत्तर
The Stock Exchange serves the sole purpose of providing a market space for purchase and sale of securities in a transparent manner. Its functions can be explained using the following points:
- Provides Liquidity and Marketability: The stock exchange provides a platform where sale and purchase of existing securities can take place. In this way, the stock exchange facilitates the conversion of securities to cash as and when required. In addition, it renders liquidity to long-term securities and can be converted to medium-term and short-term securities
- To provide fair deals through market price determination: The market demand and market supply are forces which determine the price of a security. The Stock Exchange makes sure that all buyers deal in that price only and not higher.
- Safety of Transaction: A stock exchange's membership is carefully controlled, and its transactions are well defined under the existing legal framework.
- Spreading of Equity Cult: By regulating new issues, improving trading procedures, and taking effective steps to educate the public about investments, the stock market plays a critical role in insuring greater share ownership.
- Providing Scope for Speculation: Speculative operations are carried out within the confines of the law, in a restricted and controlled manner.
- Contributes to Economic Growth: : A stock exchange is a market for existing securities which leads to in capital generation and economic progress.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
An institution which regulates and controls the activities of the Stock Exchange is called _______.
Write a word or a term or a phrase which can substitute each of the following statements:
The highest price quoted by a buyer to buy a specified number of shares or stock at any given time.
Write notes on Functions of S.E.B.I.
Write notes on.Functions of stock exchange.
Select the proper option from the option given below and rewrite the sentences:
A market where existing securities are resold or traded is called __________ market.
State, with reason, whether the following statement is True or False.
Stock exchanges reflect financial progress of the company.
Name any two details that need to be provided by the investor to the broker while filling a client registration form.
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
Jobber and stockbroker
Write Short Notes on Role of Stock Exchange (March 2009)
Answer the following question.
Stock exchange acts as a regulator of the securities market. It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. It also ensures a wider share of ownership by regulating new issues, better trading practices, and taking effective steps in educating the public about investments.
Various functions performed by the Stock Exchange are discussed in the above para. By quoting lines from above para, state any four functions of the stock exchange.
_____ is the oldest stock exchange in the world.
Stock exchange allow trading in _______.
Define Stock Exchange.
Which of the following is a function of the stock exchange?
The organisation/institution which provides scope for speculation is :
______ is a number assigned to each transaction by the stock exchange and is printed on the contract note.
