Question

What do you understand by recognized stock exchange? What is the need for having stock exchanges? Discuss.

22 Feb 2023
Answer :
Word Count : 433

A recognized stock exchange refers to a legally approved marketplace where securities such as stocks, bonds, derivatives, and commodities are traded in compliance with government regulations and oversight. These exchanges provide a platform for buyers and sellers to come together to trade financial instruments in a transparent and regulated environment.

The need for stock exchanges is multifaceted and critical to the functioning of the economy:

1. Facilitating Liquidity: Stock exchanges provide liquidity to securities by offering a platform where investors can easily buy and sell securities. ________ ______ _____ ______ ___ ________.
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