Question 34
Stock ExchangeWhich of the following is NOT a function of the stock exchange market?
- A.providing long-term loans to large scale enterprises
- B.encouraging people to buy shares and thereby providing capital for investment
- C.providing means of assessing the value of a firm's assets
- D.enabling firms to wind-up quickly in times of difficulties.
Show the answer and explanation
Answer: D (enabling firms to wind-up quickly in times of difficulties.)
Explanation
The stock exchange helps raise capital and values securities; helping firms wind up is not one of its functions.