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प्रश्न
Explain the functions of Stock Exchange.
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उत्तर
- Ready and Continuous Market: Stock exchange helps investors to sell their securities easily. And also he can convert his cash into securities.
- Correct Evaluation of Securities: The prices at which securities are bought and sold are recorded and informed to the public. These prices are called “market quotations”
- Protection to Investors: All dealings in stock exchange are in accordance with well-defined rules and regulations. Any malpractice will be severely punished.
- Proper Channelisation of Capital: People like to invest in the shares of companies which yield good profits. Also, people invest in the companies which are giving good dividends.
- Facilities for Speculation: Speculation is an integral part of stock exchange operations. As a result of speculation demand for and supply of securities are equalized.
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संबंधित प्रश्न
Study the following case/situation and express your opinion.
Mr. P has a recently got his B.Sc. degree. He has enrolled for a course in securities market. As a new student of this subject, he has few queries as follows :
- Does a Company need to be listed on a stock exchange to sell its securities through the stock exchange.
- What is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country?
- What is the term which refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of security?
Answer in brief.
State any four functions of Stock Exchange.
Which function is supported by allowing people to buy and sell existing securities?
What happens to securities because investors can buy and sell them on a stock exchange?
What continuously decides prices of securities on the stock exchange?
Who receives useful information from changing prices of securities?
Which function does a stock exchange perform by allowing some amount of healthy speculation?
How does a stock exchange provide liquidity and marketability?
Which forces determine security prices?
What does scope for healthy speculation help maintain?
