Question

Stock exchange

A) helps in the fixation of stock price B)ensures safe and fair dealing

C)Induces good performance of the company D) performs all the above functions

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Answer 1

Explanation:

A) helps in the fixation of stock price

This is the correct answer.

Answer 2

A stock exchange is simply an organization, a platform, or a facility where different stockbrokers and traders can network and bring about contacts by buying and selling shares. They can be shares of a stock, a bond or any other linked financial instrument.

• It helps in the fixation of stock price by regulating the demand and supply of shares.
• It is one of the top importance functions of the stock exchange to provide a safe and protected way of conducting business and investments.
• The transactions in the stock exchange are done under undoubtedly outlined rules and regulations. It is the duty of the authority body of a stock exchange to keep in check its employees. Practicing forgery is dejected and swiftly dealt with.
• Another important function of the stock exchange is to aid and allow the good performance of companies. For a venture to be able to function, it wants financing and capital.
• This is done by stock exchanges. They act as a major platform for the new business to raise wealth to meet their financial needs. Stock exchanges help in the formation of new ventures.

People involved in the business of a stock market can be anyone, ranging from individual stock buyers to even big trade investors and corporations.

The correct option is D) performs all the above functions.

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