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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
The floor of the stock exchange premises where the trading or auction of shares takes place.
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The highest price quoted by a buyer to buy a specified number of shares or stock at any given time.
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A market where existing securities are resold or traded is called __________ market.
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Stock exchanges reflect financial progress of the company.
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Explain the features of stock exchange.
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.
Stock exchanges deal in _________.
Stock exchange allow trading in _______.
Define Stock Exchange.
The total number of Stock Exchange in India is
______ was developed in Ahemdabad as Ahmedabad Stock Exchange (ASE) in 1894.
______ is the latest technology driven stock exchange which was recognised in 1993.
Which of the following is a function of the stock exchange?
The organisation/institution which provides scope for speculation is:
