A company can sell its shares only through___a)Only Newspapersb)Stock Exchangec)Mediad)BanksCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

When you buy shares of a company's stock, you get a small piece of ownership of the company. If you buy the stock of a company that is traded on a public stock exchange, you usually get to decide when and if you sell that stock. In certain situations, however, a company can force shareholders to sell their holdings.

Answer

Stock exchanges because it a legal  body regulated by the (SEBI).These exchange deals in the purchase and sale of various securities like share..debentures..

Answer

Becaz this is official market where we sell our share by the help SEBI

Answer

A company can sell it's share only through shock exchange.

Answer

Because it have money and he purchase goods for sell for motive of more earnings profit

Answer

If the company will share then only other will se r take interest on them by the help of this he can sell

Answer

It refers to a place where securities(shares/debentures) in companies are bought and sold

Answer

Understanding Share Selling Mechanisms
When a company decides to raise capital through the sale of its shares, it must do so through regulated platforms to ensure fairness and transparency. Among the options provided, the correct method is:
Stock Exchange
What is a Stock Exchange?
- A stock exchange is a regulated marketplace where securities, including shares, are bought and sold.
- It provides a structured environment for trading, which helps maintain price stability and liquidity.
Why Stock Exchanges are Essential?
- Regulation: Stock exchanges are governed by strict regulations, ensuring that all transactions are conducted fairly and transparently.
- Liquidity: They provide a platform for investors to easily buy and sell shares, thus enhancing liquidity.
- Price Discovery: Stock exchanges facilitate price discovery based on supply and demand.
- Credibility: Companies listed on stock exchanges are subject to regular scrutiny, which boosts investor confidence.
Other Options Explained
- Newspapers: While newspapers can announce share offerings, they do not facilitate the actual buying and selling of shares.
- Media: Similar to newspapers, media can provide information about a company's shares but cannot conduct transactions.
- Banks: Banks may assist in underwriting or facilitating share offerings but do not serve as direct platforms for trading shares.
Conclusion
In summary, shares can only be sold through a stock exchange, which provides a safe and regulated environment for trading, ensuring that both companies and investors are protected. This mechanism is crucial for maintaining the integrity of financial markets.

Top Courses for CommerceView all

Economics Class 12

Business Studies (BST) Class 12

Economics Class 11

Accountancy Class 12

Business Studies (BST) Class 11

Top Courses for Commerce

Top Courses for Commerce

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company