Question

What are the functions of a Stock Exchange?

Answer 1

SOLUTION :

Functions of stock exchange are :  

(i) Providing liquidity and marketability of existing securities :  

The most important function of stock exchange is that it provides continuous market for purchase and sale of securities. Investment in securities can be converted into cash as and when required.

 

(ii) Pricing of securities :  

The prices of shares and securities at the stock exchanges are determined on the basis of demand and supply. Stock exchange is the mechanism to determine the prices of securities. Such information helps the investor to decide to buy or sell or to hold the securities.

 

(iii) Safety of transactions.

(iv) Contribute to economic growth.

(v) Spreading equity cult.

(vi) Provide scope for speculation

HOPE THIS ANSWER WILL HELP YOU…

 

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Answer 2

$\huge\mathfrak\purple{Hello\:Dear}$❤

-The main function of a stock exchange is to facilitate the transactions associated with both buying and selling of securities.

-Stock exchanges were originally conceived for the public interest and had a clear public purpose: to allow companies to raise equity from a large pool of investors and to provide a market for investors to later sell their shares in those companies.

Hope it helps uhh✌✌