Question

Which of the following is an advantage of organized stock? exchanges? A. increased stock price volatility...

Which of the following is an advantage of organized stock? exchanges?

A.

increased stock price volatility

B.

screening companies to ensure only low risk stocks are sold

C.

providing a continuous market

D.

Only profitable companies may issue new securities on an organized exchange.

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Answer #1

ANSWER

  • An Organised Stock Exchange is one where exists continuous Buying and Selling of Securities, Derivatives, forex, Commodities etc as per the Rules and Regulations of Stock Exchange.
  • So there is No Such Restrictions like Only Low Risk Stocks will be sold OR only Profitable Companies may Issue Securities provided that the Comapny satisfies the conditions as provided by Exchange.
  • Hence by Understanding the Meaning of Organised Stock Exchange, it is clear that it provides with an Advantage of CONTINUOUS MARKET for the trade of Securities.

CORRECT OPTION OPTION (C)

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