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Question
Study the following case/situation and express your opinion.
| Mr. Pankaj has recently got his B.Sc. degree. He has enrolled in a course in the securities market. As a new student of this subject, he has a few queries as follows: |
- Does a Company need to be listed on a stock exchange to sell its securities through the stock exchange?
- What is the term used for referring to a stock exchange's ability to reflect the economic conditions of a country?
- What is the term which refers to the functions of the stock exchange as a provider of a ready market for the sale and purchase of security?
Short Note
Solution
- Yes, a company must be listed on a stock exchange in order to sell its securities on the stock exchange.
- The term 'economic mirror' refers to a stock exchange's ability to reflect a country's economic conditions.
- The term 'liquidity' refers to the stock exchange's functions as a provider of a ready market for the sale and purchase of securities.
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Functions of Stock Exchange
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Study the following case/situation and express your opinion.
Mr. P has a recently got his B.Sc. degree. He has enrolled for a course in securities market. As a new student of this subject, he has few queries as follows :
- Does a Company need to be listed on a stock exchange to sell its securities through the stock exchange.
- What is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country?
- What is the term which refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of security?
Answer in brief.
State any four functions of Stock Exchange.
_________ means the price at which securities are bought and sold are recorded and made public.
Explain the functions of Stock Exchange.
