Question:
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): The investing public gets a safe and fair deal on the stock market.
Reason (R): The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative from the following:
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): The investing public gets a safe and fair deal on the stock market.
Reason (R): The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative from the following:
Assertion (A): The investing public gets a safe and fair deal on the stock market.
Reason (R): The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative from the following:
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Remember: Safety in financial markets does not happen by accident; it is always a direct result of strict legal and regulatory frameworks.
Updated On: Jun 25, 2026
- Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are incorrect.
- Assertion (A) is correct, but Reason (R) is incorrect.
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The Correct Option is A
Solution and Explanation
Step 1: Concept
Functions of a Stock Exchange.
Step 2: Meaning
A stock exchange provides a structured and secure environment where investors can safely buy and sell securities, governed by strict rules to prevent fraud.
Step 3: Analysis
• Assertion (A) is correct because ensuring the safety of transactions for the investing public is one of the primary functions of a recognized stock exchange.
• Reason (R) is also correct because it highlights the strict regulatory mechanisms and legal boundaries that govern brokers (members) and trading activities.
• The strict regulation of membership and dealings (Reason) is the exact mechanism that ensures the market is secure and transparent for investors (Assertion).
Step 4: Conclusion
Both statements are factually correct, and the Reason provides the logical explanation for how the Assertion is achieved.
Final Answer: (A)
Functions of a Stock Exchange.
Step 2: Meaning
A stock exchange provides a structured and secure environment where investors can safely buy and sell securities, governed by strict rules to prevent fraud.
Step 3: Analysis
• Assertion (A) is correct because ensuring the safety of transactions for the investing public is one of the primary functions of a recognized stock exchange.
• Reason (R) is also correct because it highlights the strict regulatory mechanisms and legal boundaries that govern brokers (members) and trading activities.
• The strict regulation of membership and dealings (Reason) is the exact mechanism that ensures the market is secure and transparent for investors (Assertion).
Step 4: Conclusion
Both statements are factually correct, and the Reason provides the logical explanation for how the Assertion is achieved.
Final Answer: (A)
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