'The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices.' Identify the function of Stock Exchange highlighted in the above sentence. ( – Answer & Explanation | CUET Subject PYQ – Dubuddy
'The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices.' Identify the function of Stock Exchange highlighted in the above sentence. (
Providing Scope for Speculation: The stock exchange provides sufficient scope within the provisions of law for speculative activity in a restricted and controlled manner.
Spreading of Equity Cult: The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.
Safety of Transaction: The membership of a stock exchange is well regulated and its dealings are well defined according to the existing legal framework. This ensures that the investing public gets a safe and fair deal on the market.
Pricing of Securities: Share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities are determined.