Which of the following is an advantage of organized stock exchanges?

Question

Quizplus · Accepted Answer

Organized stock exchanges provide a continuous market, meaning that there is always a platform for buying and selling stocks, increasing market liquidity and efficiency. Answer A is incorrect as increased stock price volatility is seen as a disadvantage of organized stock exchanges. Answer B is also incorrect as organized stock exchanges do not necessarily screen companies based on low risk and instead have listing requirements based on various factors such as financial performance and reporting standards. Answer D is incorrect as profitable companies are not the only ones allowed to issue new securities on organized exchanges; rather, the listing requirements vary based on the exchange and can include factors such as size, financial performance, and minimum number of shareholders.

Which of the Following Is an Advantage of Organized Stock