Which of the following functions is performed by the stock exchange markets?
Answer Details
One of the main functions of stock exchange markets is to provide a platform for the purchase and sale of existing securities. Securities are financial instruments such as stocks, bonds, and other investment products that are bought and sold on the stock exchange markets. The stock exchange markets provide a centralized and regulated marketplace where buyers and sellers can come together to trade these securities.
By providing a platform for the purchase and sale of existing securities, the stock exchange markets allow companies to raise capital by issuing stocks and bonds to investors. It also allows investors to buy and sell securities, which can help them to diversify their portfolios and potentially earn a return on their investment.
Overall, the provision of a purchase and sale platform for existing securities is one of the primary functions of stock exchange markets, and it helps to facilitate investment, economic growth, and capital formation.