The business in the stock exchange is characterized essentially by
The business in the stock exchange is characterized essentially by
- A) dealing
- B) brokerage
- C) speculations
- D) transactions
Correct Answer: B) brokerage
Explanation
The stock exchange is a place where people buy and sell stocks, which are shares of ownership in a company. This question is asking about the nature of business in the stock exchange.Option A: Dealing. This refers to the act of buying and selling stocks. So, it is one of the activities that take place in the stock exchange, but it is not the main characteristic.
Option B: Brokerage (Correct). This refers to the role of stockbrokers who help investors buy and sell stocks. They act as intermediaries between buyers and sellers. Brokerage is a key characteristic of the stock exchange because it facilitates the trading of stocks.
Option C: Speculations. This refers to buying or selling stocks based on predictions of future price movements, rather than on the company's actual value. While speculation does happen in the stock exchange, it is not the main characteristic.
Option D: Transactions. This is a general term that can refer to any buying or selling activity. While transactions do occur in the stock exchange, it is not the main characteristic.
Therefore, the correct answer is Option B: Brokerage. It represents the key activity that takes place in the stock exchange, where stockbrokers help investors buy and sell stocks.