Question

How does the stock market contribute to the safety of security transactions?

a.

By allowing unlimited listing of securities

b.

By trading unlisted securities with caution

c.

By conducting thorough scrutiny of listed companies

d.

By avoiding adherence to laid down norms

Answer: (c).By conducting thorough scrutiny of listed companies Explanation:Only listed securities are traded on the stock market after careful scrutiny of the financial strength and soundness of a company.

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Q. How does the stock market contribute to the safety of security transactions?

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