7
QuizMultiple Choice

Investing and Financial Markets

Question 7 • Personal Finance - EL3403

Are the buying and selling of stocks centralized activities? Why or why not?

Answer
A
Yes, the New York Stock Exchange is the primary exchange for all the world’s most important trades.
B
No, people can buy stocks anywhere, and they do not need to go through a market.
C
Yes, the world’s stock markets are coordinated exchanges, and they are dependent on one another.
D
No, there are many stock markets around the world, and they are independent of one another.

Explanation

No. Stocks are traded on many exchanges around the world, and those markets operate independently rather than through one central marketplace. The New York Stock Exchange is important, but it does not handle all of the world’s stock trades, so choice D is correct.

AI-written and checked against the verified answer.

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