Advertisements
Advertisements
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.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Write notes on Bombay Stock Exchange.
An institution which regulates and controls the activities of the Stock Exchange is called _______.
Write notes on Functions of S.E.B.I.
Write notes on.Functions of stock exchange.
A market place where existing securities are bought and sold.
The institution which regulates business in stock exchange.
State any two reasons why investing public can expect a safe and fair deal in the stock market. (Point w.r.t safety of Transactions – Functions of the Stock Exchange).
Name any two details that need to be provided by the investor to the broker while filling a client registration form.
Write a word or a term or a phrase which can substitute the following statement :
The place where buying and selling of securities takes place.
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.
There are _____ stock exchange in the country.
What is meant by Stock Exchange?
Define Stock Exchange.
______ is the latest technology driven stock exchange which was recognised in 1993.
Which of the following is a function of the stock exchange?
When the stock market is bearish, a company must go for which of the following?
When the stock market is bullish, a company must go for which of the following?
The organisation/institution which provides scope for speculation is:
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
Employ more of cheaper debt may enhance the EPS. Such practice is called :
