Question 20 of 38
Q.What is stock exchange ?
Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2022Subjective· 2mImportance★★★★★
53% · 20/38 Questions
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Start your 14-day free trial to unlock the full solution →A stock exchange is an organised, regulated secondary market where already-issued securities like shares, debentures and bonds are bought and sold.
A stock exchange is a properly organised and regulated marketplace for the purchase and sale of existing (already issued) securities. It provides a ready and continuous market where investors can convert their securities into cash and vice versa.
Main points (as tested in the Tamil Nadu HSC Commerce syllabus):
- It deals in listed securities — shares, debentures, bonds and government securities.
- It is a secondary market, i.e. it trades securities that have already been issued, not fresh issues.
- It functions under fixed rules and regulations and the supervision of SEBI, ensuring safety and fair dealing.
- It helps in price determination and provides liquidity to investors. …
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