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Question
State any four features of the stock exchange.
Answer in Brief
Solution
- Market for securities: Stock exchange is a place where all types of corporate securities as well as securities of government and semi-government bodies are traded.
- Second-hand securities: Securities traded on the stock exchange are those securities that are already issued by the companies. In other words, secondhand securities are bought and sold among investors in a stock exchange.
- Listed securities: Only securities that are listed with the stock exchange can be traded on a stock exchange. A listing of securities helps in protecting the interests of investors, as companies have to strictly comply with the rules laid down by the stock exchange.
- Organised and Regulated Market: All listed companies have to comply with the guidelines of SEBI. Companies will also have to function as per the rules and regulations laid down by the stock exchange.
- Specific Location: A stock exchange is a specific physical place where securities are traded. It is a marketplace where brokers and intermediaries meet to conduct dealings in securities. Today, all trading is done electronically on a stock exchange.
- Trading only through members: Securities in a stock exchange can be traded only by the members of the exchange on their own behalf or through authorised brokers.
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Stock Exchange
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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?
Justify the following statement.
Stock exchanges work for the growth of the Indian economy.
Explain the functions of Stock Exchange.
Explain the following term/concept in detail:
Stock Exchange
