Question

Assertion (A): A share is considered to be a movable property.

Reason (R): A share can be purchased or sold in a stock exchange in case of a listed company.

In the context of the above two statements, which of the following is correct?

Options

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

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

• Both (A) and (R) are false.

• (A) is false, but (R) is true.

Answer 1

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

Explanation:

A share is considered movable property as it can be transferred from one person to another. In listed companies, shares can be bought or sold on a stock exchange, making them easily tradable.
However, trading on a stock exchange is not the reason shares are movable property.