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Question
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?
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Solution
- Yes, a company must be listed on a stock exchange in order to sell its securities on the stock exchange.
- The term 'economic mirror' refers to a stock exchange's ability to reflect a country's economic conditions.
- The term 'liquidity' refers to the stock exchange's functions as a provider of a ready market for the sale and purchase of securities.
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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.
_________ means the price at which securities are bought and sold are recorded and made public.
Where are existing securities bought and sold by investors?
What do the functions of a stock exchange make easy, safe and useful for the economy?
Which activities do the functions of a stock exchange help investors perform effectively?
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?
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?
What does scope for healthy speculation help maintain?
