How The Stock Exchange Operates - SS2 Economics Past Questions and Answers - page 1
1
What is the primary function of the stock exchange?
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A
To facilitate the trading of securities
B
To regulate financial markets
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C
To provide investment advice to investors
D
To issue stocks to companies
2
How are the prices of stocks determined on the stock exchange?
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A
By the forces of supply and demand
B
By the stock exchange itself
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C
By the government
D
By the companies issuing the stocks
3
What is the role of brokers in the stock exchange?
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A
To act as intermediaries between investors and the stock exchange
B
To set prices for stocks
C
To regulate financial markets
D
To issue stocks to companies
4
What is the purpose of clearing and settlement on the stock exchange?
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A
To transfer ownership of stocks from the seller to the buyer
B
To transfer payment from the buyer to the seller
C
Both a and b
D
None of the above
5
How do companies raise capital through the stock exchange?
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6
What type of market data does the stock exchange provide to market participants?
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