10
QuizMultiple Choice

Investing and Financial Markets

Question 10 • Personal Finance - EL3403

Since stocks can be traded online, which purpose is best served by markets?

Answer
A
Markets regulate transactions.
B
Markets are where the trades actually occur.
C
Markets sell the assets to be traded.
D
Markets ensure that the transactions are secure.

Explanation

Online trading means buyers and sellers do not have to meet in a physical place. Markets still provide the system where orders to buy and sell are matched and trades occur. So “Markets are where the trades actually occur” is the best choice; markets need not sell the assets themselves.

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