English
Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

Explain the functions of Stock Exchange.

Advertisements
Advertisements

Question

Explain the functions of Stock Exchange.

Long Answer
Advertisements

Solution

  1. Ready and Continuous Market: Stock exchange helps investors to sell their securities easily. And also he can convert his cash into securities.
  2. 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”
  3. Protection to Investors: All dealings in stock exchange are in accordance with well-defined rules and regulations. Any malpractice will be severely punished.
  4. 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.
  5. 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.
shaalaa.com
  Is there an error in this question or solution?
Chapter 7: Stock Exchange - Exercise [Page 58]

APPEARS IN

Samacheer Kalvi Commerce [English] Class 12 TN Board
Chapter 7 Stock Exchange
Exercise | Q IV. 1. | Page 58
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×