Multiple choice

Listing of shares at a stock exchange ensures

  1. guaranteed returns

  2. long term capital appreciation

  3. low risk

  4. high liquidity
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Listing shares on a stock exchange provides high liquidity - investors can buy or sell shares quickly during trading hours at market-determined prices. This liquidity is a key advantage of listed securities over unlisted investments. Listing does NOT guarantee returns (prices can fall), ensure long-term appreciation (depends on company performance), or reduce risk (equities remain volatile). Liquidity simply means ease of conversion to cash.

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