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

Question

Quizplus · Accepted Answer

Organized stock exchanges provide a continuous market for securities, ensuring that buyers and sellers can always find each other and facilitating price discovery. This helps to increase liquidity and reduce transaction costs. Option A is incorrect because increased stock price volatility is generally seen as a disadvantage rather than an advantage. Option B is incorrect because while some screening may occur, it is not the primary purpose of organized exchanges. Option D is incorrect because profitable companies may issue new securities anywhere, not just on organized exchanges.

Which of the Following Is an Advantage of Organized Stock