'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.
(
This question was previously asked in
Shift 01/06/2023 8:30 AM - 11:30 AM
A
Scope for speculation
B
Spreading of Equity Cult
C
Safety of Transactions
D
Pricing of Securities
Correct Answer
Spreading of Equity Cult
Detailed Explanation
- 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.
Get Dubuddy App
Practice on the go with our mobile app
More CUET Questions
1
Which one of these is not the primary skill requirement in entrepreneurship?
(
2
The decision of raising funds through debt or equity constitutes which type of decision?
(
3
Identify the type of Decision not taken by finance manager in a company.
(
4
Identify the concept which is not a part of promotion mix.
(
Test Series
CUET Subjects
Your CUET Journey Starts with DuBuddy
CUET ki Practice Means DuBuddy Pe Practice