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What happens to securities because investors can buy and sell them on a stock exchange?

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Question

What happens to securities because investors can buy and sell them on a stock exchange?

Options

  • They become easy to sell and buy in the market.

  • Their prices stop changing.

  • They become legal rules.

  • They no longer need demand and supply.

MCQ
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Solution

A stock exchange provides a place for buying and selling existing securities. As a result, securities become easier to sell and buy in the market.

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