Question

What is the primary function of the stock market in terms of liquidity?

a.

Restricts investment to long-term projects

b.

Ensures healthy speculation of securities

c.

Converts long-term investment into short-term and medium-term

d.

Permits unlimited speculation on securities

Answer: (c).Converts long-term investment into short-term and medium-term Explanation:The stock market ensures liquidity by allowing investors to convert long-term investments into short-term and medium-term as needed.

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Q. What is the primary function of the stock market in terms of liquidity?

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