__________ provides a transaction platform where buyers and sellers can meet to transact in securities.(1.0 Marks)Stock ExchangeASEBIBDepositoriesCMutual Funds
Question
__________ provides a transaction platform where buyers and sellers can meet to transact in securities.
(1.0 Marks)
- Stock Exchange
- ASEBIB
- Depositories
- CMutual Funds
Solution
The correct answer is Stock Exchange.
Explanation:
A stock exchange is a centralized marketplace where financial instruments such as stocks, bonds, commodities, and other securities are bought and sold. It acts as an intermediary for buyers and sellers, providing a structured environment for trading. The stock exchange facilitates price discovery and liquidity, allowing investors to easily enter and exit their positions.
Established exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ, provide platforms for listed companies to raise capital by issuing shares to the public. Additionally, exchanges impose regulations and standards for listed companies, promoting transparency and protecting investors. In contrast, options like depositories or mutual funds serve different functions in the financial ecosystem and do not directly provide a platform for transaction activities between buyers and sellers in the securities market. Therefore, the most suitable choice is the stock exchange.
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