Consider the following statements given below Stock market is a place where the shares of public lis...........

Economic Affairs Financial Markets

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Consider the following statements given below.

Stock market is a place where the shares of public listed companies are traded.
The secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

Which of the statements given above are correct?

Only 1

Only 2

Both 1 and 2

None of the above

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Explanation:

Stock Market is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto.

[The primary market is where securities are created, while the secondary market is where those securities are traded by investors.]