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Business Studies · 2022 · 5 marks
CBSE 2022 · Region 2 · Set 1 · Q10
What is meant by a ‘Stock Exchange’? State any three functions of a ‘Stock Exchange’.
What is meant by a ‘Stock Exchange’? State any three
functions of a ‘Stock Exchange’.
Marking-scheme solution
Stock Exchange is an institution which provides a
platform for buying and selling of existing securities.
Functions of Stock Exchange are:
(a)
It provides liquidity and marketability to existing securities
by allowing the investors a chance to disinvest and reinvest.
(b)
It determines the price of securities on the basis of the
forces of demand and supply.
(c)
It ensures safety of transactions as the transactions carried
out within an existing legal framework.
(d)
It contributes to economic growth as it indirectly promotes
capital formation.
(e)
It spreads equity cult and ensures wider share ownership.
(f)
It provides scope for speculation within the provisions of
law.
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CBSE Class 12 Business Studies past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.