1.

Explain valuation of securities as an important function of the stock exchange.

Answer»

Valuation of the securities:

  • The demand and supply of the securities in the market decide their valuation or say price.
  • The valuation of securities is also determined by other factors such as dividend declared by the company, factors affecting money market, etc.
  • Valuation of securities enables the investors to decide whether to purchase or sell the securities.
  • The valuation of securities is also useful to the government and creditors


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