Question 96
Stock ExchangeWhich of the following is not true of the stock exchange?
- A.It is a commodity market
- B.It is a market for stock and shares
- C.It draws up rules to guide share dealing
- D.Government and companies raise funds through it
- E.Prices for shares are determined by it
Show the answer and explanation
Answer: A (It is a commodity market)
Explanation
The stock exchange deals in securities, not in commodities such as cocoa or metals.