With reference to Social Stock Exchange consider the following statements 1 They are the platforms w...........

Indian Economic System(BPSC) Financial System

With reference to Social Stock Exchange, consider the following statements:

1. They are the platforms where shares of companies after raising capital from public investors are traded.

2. Any not-for-pro i organization (NPO) working for social goals essentially can raise capital from public investors by listing on SSE akin to what normal companies do for listing on stock exchanges.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Explanation: Both statements are correct. Supplementary notes: Social Stock Exchange Stock exchanges are generally the platforms where shares of companies after raising capital from public investors are traded. Essentially a stock exchange listing facilitates capital raising opportunities for the company. Investors get to buy and sell shares on such exchanges. SSEs also mostly work the same way. Any not-for-pro fi t organization (NPO) working for social goals essentially can raise capital from public investors by listing on SSE akin to what normal companies do for listing on stock exchanges. However, a key difference between SSE and a normal stock exchange is trading by investors. Since the money being invested in an SSE listed entity is a donation, investors can neither make returns on such securities nor trade them like normal shares.