ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one is NOT a function of stock exchange
A
provides scope for healthy speculation
B
ensures about frauds and safety
C
ensures liquidity
D
provides a legal framework
Explanation: 

Detailed explanation-1: -Regulation of takeover bids by companies is not a protective function of the stock exchange.

Detailed explanation-2: -Basic function of stock exchange are providing Liquidity and Marketability to existing securities.

Detailed explanation-3: -KPO does not belong to the stock exchange. ( Outsourcing of fundamental, information-related corporate tasks is known as knowledge process outsourcing (KPO).

Detailed explanation-4: -Continuous and ready market for securities. Stock exchange provides a ready and continuous market for purchase and sale of securities. Facilitates evaluation of securities. Stock exchange is useful for the evaluation of industrial securities. Encourages capital formation. Provides safety and security in dealings.

There is 1 question to complete.