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GCE Commerce 1989 Question 51

Question 51

Stock Exchange

Which of the following functions is performed by the stock exchange market?

  1. A.Provision for bulk purchase
  2. B.Issuing of treasury bills
  3. C.Provision of the purchase and sale of existing securities
  4. D.Discounting bills of exchange
  5. E.Providing for short-term investments.
Show the answer and explanation

Answer: C (Provision of the purchase and sale of existing securities)

Explanation

The stock exchange is a market for buying and selling existing (second-hand) securities.