Question

Assertion (A): The investing public gets a safe and fair deal on the stock market.

Reason (R): The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.

Choose the correct alternative from the following:

पर्याय

• Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (А).

• Both Assertion (A) and Reason (R) are incorrect.

• Assertion (A) is correct, but Reason (R) is incorrect.

Answer 1

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Stock exchanges and markets function under a legal and regulatory framework (membership rules, listing requirements, prescribed dealing procedures and disclosure norms) that are designed to ensure transparency and fair treatment of investors; therefore, the well‑regulated membership and defined dealings explain why the investing public is given a safe and fair deal.