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Business Studies · 2022 · 5 marks
CBSE 2022 · Region 1 · Set 1 · Q10
State any five functions of a 'Stock Exchange'.
Marking-scheme solution
Functions performed by a Stock Exchange
:
(i) Stock Exchanges provide liquidity and marketability
to existing securities by giving investors the chance
to disinvest and reinvest.
(ii)
They help in determining the prices of securities
through the forces of demand and supply.
(iii)
Stock exchanges ensure the investors safety of
transactions and fair deal on the market as they are
well-regulated and their dealings are well-defined
according to the existing legal framework.
(iv)
Stock exchanges contribute to economic growth
through the process of disinvestment and reinvestment
and channelising the savings into most productive
investment avenues.
(v)
Stock exchanges spread equity cult by regulating
new issues, better trading practices and taking
effective steps in educating the public about
investments.
(vi)
Stock exchanges provide sufficient scope for
speculation within the provisions of law in a
restricted and controlled manner.
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CBSE Class 12 Business Studies past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.