Question
Which of the following statements about stock markets
is/are correct? 1)Â Â Â Stock markets provide a platform for companies to raise funds through the sale of stocks to investors. 2)Â Â Â The price of a stock on a stock exchange is determined by the supply and demand for the stock. 3)Â Â Â Stocks are ownership claims on the business.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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