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Question
Explain the following term/concept in detail:
Stock Exchange
Solution
The stock exchange is a specific place where various types of securities are purchased and sold. The term securities include equity shares, preference shares, debentures, government securities, and bonds. etc., including units of Mutual Funds. Stock markets act as intermediaries between investors and borrowers. To provide safety and stability to the investors. Stock exchanges in India are regulated by SEBI.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
A stock exchange is where stock brokers and traders can buy and sell ______.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) SEBI | 1) Expects the price of shares rise in future. |
| b) Day Trading | 2) Expects the price of shares fall in future. |
| c) Bull | 3) Buying and selling of securities within the same trading day |
| d) Bear | 4) To protect the interest of investors in securities market. |
| e) BSE | 5) Buying and selling of securities to particular investors. |
| 6) One of the oldest stock exchange in India. | |
| 7) To protect the interest of companies in securities market. | |
| 8) Buying and selling of securities within a week. | |
| 9) Newest Stock Exchange in India. | |
| 10) One who invests in new issues of securities. |
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Regulator of capital market | 1) _____________ |
| b) ____________ | 2) Nifty |
| c) Jobber | 3) ____________ |
| d) ____________ | 4) Oldest Stock Exchange in the world. |
(London Stock Exchange, Index of NSE, SEBI, trades in securities in his own name)
Select the Suitable option for the following.
____________ Oldest Stock Exchange in the world.
Answer in one sentence.
What is Stock Exchange?
State any four features of the stock exchange.
Justify the following statement.
Stock exchanges work for the growth of the Indian economy.
Explain the functions of Stock Exchange.
