Question

Which of the following is a function of the stock exchange? I. To create profits II....

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

I. To create profits

II. To establish markets

III. To operate clearing systems

IV. To provide a well informed market

Multiple Choice

  • I, II, IV

  • I, II, III

  • II, III, IV

  • I, III, IV

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Homework Answers

Answer #1

The function of stock exchange is not to create any profits.

Stock exchanges are required to provide an adequate platform for share price discovery in order to establish the market and operate a better clearing system along with well informed market so that there could be transparency in operations.

So, it can be said that the stock market function is of establishment of the markets along with operational clearing systems and providing a well-informed market.

Correct answer will be option (C)II, III, IV

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