Question:easy

'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?

Show Hint

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
Show Solution

The Correct Option is B

Solution and Explanation

Step 1: Identify the key phrases in the statement.
The statement highlights: wider share ownership, regulating new issues, better trading practices, and educating the public about investments.
Step 2: Understand Providing Scope for Speculation.
This function involves allowing a degree of speculative buying and selling to maintain liquidity and ensure continuous price discovery. The statement does not mention speculation.
Step 3: Understand Safety of Transactions.
This function ensures that trading is conducted under strict rules, regulations, and supervision to protect investors from fraud. The statement does mention regulating, but the focus is on education and wider ownership, which goes beyond mere safety.
Step 4: Understand Contributes to Economic Growth.
This function refers to the stock exchange facilitating capital formation and reinvestment in the economy. The statement does not specifically discuss economic growth.
Step 5: Understand Spreading of Equity Cult.
This function means the stock exchange actively promotes a culture of equity investment among the general public. It does this by ensuring wider share ownership, educating common people about the benefits and risks of investing, and regulating new issues so more investors can participate confidently.
Step 6: Match and confirm.
The phrases wider share ownership and educating the public are the defining markers of Spreading of Equity Cult.
\[ \boxed{ \text{(B) Spreading of Equity Cult} } \]
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