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Question
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?
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Solution
- Yes, a company needs to be listed on a stock exchange to sell its securities through the stock exchange.
- ‘Economic mirror’ is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country
- ‘Liquidity’ is the term which refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of the security.
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Study the following case/situation and express your opinion.
| Mr. Pankaj has recently got his B.Sc. degree. He has enrolled in a course in the securities market. As a new student of this subject, he has a 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 the sale and purchase of security?
What do the functions of a stock exchange make easy, safe and useful for the economy?
Which function is supported by allowing people to buy and sell existing securities?
What continuously decides prices of securities on the stock exchange?
What kind of place does a stock exchange offer for trading in securities?
Directing people’s savings to better investments helps in which two outcomes?
Which actions help a stock exchange motivate people to invest in securities?
Why is some amount of healthy speculation needed?
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?
How does a stock exchange promote economic growth?
What does scope for healthy speculation help maintain?
