Question:
'Stock Exchange is playing a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.'
The above lines highlight which function of stock exchange from the following?
'Stock Exchange is playing a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.'
The above lines highlight which function of stock exchange from the following?
The above lines highlight which function of stock exchange from the following?
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Remember: Whenever a stock exchange tries to "educate" the public or promote "wider ownership," it is spreading the "Equity Cult" (investment culture).
Updated On: Jun 25, 2026
- Providing Scope for Speculation
- Spreading of Equity Cult
- Safety of Transactions
- Contributes to Economic Growth
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The Correct Option is B
Solution and Explanation
Step 1: Concept
Functions of a Stock Exchange.
Step 2: Meaning
A stock exchange not only provides a market for existing securities but also actively promotes the habit of investment among the general public.
Step 3: Analysis
• Providing Scope for Speculation ensures a degree of healthy speculative activity to maintain liquidity.
• Safety of Transactions ensures that trading is conducted under strict rules and regulations.
• Contributes to Economic Growth involves the process of continuous reinvestment leading to capital formation.
• Spreading of Equity Cult specifically refers to the exchange taking steps to educate the public, regulate issues, and encourage wider ownership of shares among retail investors.
Step 4: Conclusion
The phrasing "wider share ownership" and "educating the public" are the exact definitions of spreading the equity cult.
Final Answer: (B)
Functions of a Stock Exchange.
Step 2: Meaning
A stock exchange not only provides a market for existing securities but also actively promotes the habit of investment among the general public.
Step 3: Analysis
• Providing Scope for Speculation ensures a degree of healthy speculative activity to maintain liquidity.
• Safety of Transactions ensures that trading is conducted under strict rules and regulations.
• Contributes to Economic Growth involves the process of continuous reinvestment leading to capital formation.
• Spreading of Equity Cult specifically refers to the exchange taking steps to educate the public, regulate issues, and encourage wider ownership of shares among retail investors.
Step 4: Conclusion
The phrasing "wider share ownership" and "educating the public" are the exact definitions of spreading the equity cult.
Final Answer: (B)
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