What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian businesses
(C) Providing prudential supervision of financial institutions
(D) Ensuring investors create economic growth and employment prospects - HSC - SSCE Business Studies - Question 6 - 2006 - Paper 1
Question 6
What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian bus... show full transcript
Worked Solution & Example Answer:What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian businesses
(C) Providing prudential supervision of financial institutions
(D) Ensuring investors create economic growth and employment prospects - HSC - SSCE Business Studies - Question 6 - 2006 - Paper 1
Step 1
A) Conducting a public market in shares and debentures
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Answer
This option refers to the secondary market aspect of the Stock Exchange where public offerings of shares and bonds are conducted, but it doesn't encompass the main role of the ASX.
Step 2
B) Buying and selling securities in Australian businesses
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Answer
This statement accurately describes the primary activity of the Australian Stock Exchange, which facilitates the trading of securities, including shares of publicly listed companies.
Step 3
C) Providing prudential supervision of financial institutions
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Answer
This option is incorrect as the ASX does not supervise financial institutions; this is generally the role of regulatory bodies.
Step 4
D) Ensuring investors create economic growth and employment prospects
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Answer
While the activity of the ASX can impact economic growth and employment, it is not the main role of the exchange itself.
