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Which function is supported by allowing people to buy and sell existing securities?

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Question

Which function is supported by allowing people to buy and sell existing securities?

Options

  • Spreading of Equity Cult

  • Determination of Prices

  • Scope for Speculation

  • Provides Liquidity and Marketability

MCQ
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Solution

Buying and selling existing securities gives investors a way to trade their holdings. This provides liquidity and marketability.

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