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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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