The correct answer is: A. second hand securities.
A stock exchange is a marketplace where buyers and sellers can trade securities, such as stocks and bonds. Securities are financial instruments that represent ownership in a company or debt owed by a company. When you buy a stock, you are buying a piece of ownership in the company. When you buy a bond, you are lending money to the company.
Stock exchanges allow buyers and sellers to trade securities quickly and easily. They also provide a way for companies to raise money by selling shares of stock.
There are many different stock exchanges around the world, the largest of which are the New York Stock Exchange (NYSE), the NASDAQ Stock Market, and the London Stock Exchange.
Here is a brief explanation of each option:
- Option A: second hand securities. This is the correct answer. A stock exchange deals with the buying and selling of second hand securities. When you buy a stock on a stock exchange, you are not buying it directly from the company that issued the stock. You are buying it from another investor who already owns the stock.
- Option B: issued of equity shares. This is not the correct answer. A stock exchange does not deal with the issuing of equity shares. The issuing of equity shares is the responsibility of the company that is issuing the shares.
- Option C: issue of preference shares. This is not the correct answer. A stock exchange does not deal with the issue of preference shares. The issue of preference shares is the responsibility of the company that is issuing the shares.
- Option D: issue of debentures. This is not the correct answer. A stock exchange does not deal with the issue of debentures. The issue of debentures is the responsibility of the company that is issuing the debentures.