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प्रश्न
Answer the following question.
Stock exchange acts as a regulator of the securities market. It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. It also ensures a wider share of ownership by regulating new issues, better trading practices, and taking effective steps in educating the public about investments.
Various functions performed by the Stock Exchange are discussed in the above para. By quoting lines from above para, state any four functions of the stock exchange.
उत्तर
The functions performed by the Stock Exchange are as follows:
1. Provide liquidity and marketability -
'Stock exchange creates a continuous market where the securities are brought and sold'. It provides a ready platform for the trading of existing securities.
2. Spreading Equity Cult -
'Stock exchange takes effective steps in educating the public about investments'. It encourages wider ownership of securities.
3. Facilitates growth and development of the economy -
'It provides a platform for channelising the savings to the most productive use'. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues.
4. Ensures safety in transactions -
'It ensures that investing people gets a safe and a fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework'.
संबंधित प्रश्न
An institution which regulates and controls the activities of the Stock Exchange is called _______.
Write a word or a term or a phrase which can substitute each of the following statements:
The highest price quoted by a buyer to buy a specified number of shares or stock at any given time.
Write notes on Functions of S.E.B.I.
Write notes on.Functions of stock exchange.
Select the proper option from the option given below and rewrite the sentences:
A market where existing securities are resold or traded is called __________ market.
A market place where existing securities are bought and sold.
Name any two details that need to be provided by the investor to the broker while filling a client registration form.
What are the functions of the Stock Exchange?
Jobber and stockbroker
Stock exchanges deal in _________.
The total number of Stock Exchange in India is
______ was developed in Ahemdabad as Ahmedabad Stock Exchange (ASE) in 1894.
The organisation/institution which provides scope for speculation is :
NSE and BSE are types of ______.
When the stock market is bullish, a company must go for which of the following?
The organisation/institution which provides scope for speculation is:
______ refers to the time period between placing an order its receipts in stock.
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
Employ more of cheaper debt may enhance the EPS. Such practice is called :
Arrange the steps involved in trading procedure at the stock exchange in correct sequence:
- Settlement of order
- Opening of Demat Account
- Placing of order
- Execution of order
