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    Question

    Which of the following statements about stock markets

    is/are correct? 1)    Stock markets provide a platform for companies to raise funds through the sale of stocks to investors. 2)    The price of a stock on a stock exchange is determined by the supply and demand for the stock. 3)    Stocks are ownership claims on the business.
    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    Statement 1 is correct as stock markets provide a platform for companies to raise funds through the sale of stocks to investors. Statement 2 is also correct as the price of a stock on a stock exchange is determined by the supply and demand for the stock.

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