Question

Which of the following is a function of the stock exchange?

Options

• Providing liquidity and marketability to existing securities

• Spreading of equity cult

• Contributing to economic growth

• All of the above

Answer 1

All of the above

Explanation - 

The stock exchange provides liquidity as well as easy marketability to already existing stocks. Securities from diverse companies are bought and sold on the stock exchange. This disinvestment and reinvestment process enables investors to invest in the most productive investment proposals, resulting in capital formation and economic progress.