Stock exchange market is the example fora)unregulated marketb)regulate...
Regulated Market: Stock Exchange Market
A regulated market is a market that is monitored and governed by a set of rules and regulations designed to promote fairness, transparency, and investor protection. One example of a regulated market is the stock exchange market.
The stock exchange market is a marketplace where securities such as stocks, bonds, and derivatives are traded. It is regulated by a governing body, such as the Securities and Exchange Board of India (SEBI) in India, which sets the rules and regulations that govern the market.
The regulations enforced by the governing body are designed to ensure that all market participants operate under a level playing field and that investors are protected from fraudulent activities. These regulations include:
1. Listing Requirements: Companies seeking to list their securities on the stock exchange must meet certain criteria, such as having a minimum level of capitalization and a minimum number of shareholders.
2. Disclosure Requirements: Companies listed on the stock exchange are required to disclose certain information to the public, such as financial statements and other material information that may affect the value of their securities.
3. Trading Rules: The stock exchange has rules and regulations that govern the trading of securities, such as the minimum and maximum price limits for trading.
4. Investor Protection: The governing body also enforces rules to protect investors from fraudulent activities, such as insider trading and market manipulation.
In conclusion, the stock exchange market is an example of a regulated market, as it is governed by a set of rules and regulations designed to promote fairness, transparency, and investor protection.
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