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    Question

    Which of the following is not a function of stock

    exchange?
    A The price of securities in the secondary market is reflective of all information about the issuer and his business including associated Correct Answer Incorrect Answer
    B It enables those who hold securities to adjust their holdings in response to changes in their assessment of risk and return Correct Answer Incorrect Answer
    C It provides liquidity to the investments of an investor Correct Answer Incorrect Answer
    D All are functions of stock exchange Correct Answer Incorrect Answer

    Solution

    Secondary market essentially comprises of stock exchanges which provide platform for purchase and sale of securities by investors. The trading platform of stock exchanges is accessible only through brokers and trading of securities is confined only to stock exchanges.

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