Stock exchange is also known as :

Correct option is A

A stock exchange is a platform where already issued securities such as equity shares, debentures, bonds, and other financial instruments are bought and sold. This market facilitates trading of existing securities, not new issues.
Such a market is called the Secondary Market because:
· Securities that have already been issued in the primary market are traded here.
· Investors buy and sell amongst themselves.
· The issuing company does not receive money from secondary market transactions.
· It provides liquidity, marketability, and price discovery for securities.
Therefore, a stock exchange is essentially a secondary market.
Hence, the correct answer is (a) Secondary Market.
In the explanation, the correct option is highlighted in bold, as required.
Information Booster
1. The primary market deals with new issues, whereas the secondary market deals with trading of existing securities.
2. Stock exchanges like BSE, NSE, NYSE facilitate daily trading, price discovery, and liquidity.
3. Secondary markets help investors convert their shares into cash easily, promoting financial flexibility.
4. Efficient functioning of stock exchanges supports capital formation and economic growth.
5. SEBI regulates stock exchanges to ensure transparency, fairness, and investor protection.
Additional Information
· (b) Primary Market – Incorrect; the primary market is where companies issue new securities (IPO/FPO) for the first time.
· (c) Money Market – Incorrect; this market deals with short-term financial instruments like T-bills, CPs, CDs, not stocks.
· (d) Both Secondary Market and Money Market – Incorrect; stock exchange is only a secondary market, never part of the money market.