Do this if stock market crashes #shorts

Pattrick, a writer, wants to trade in stock market but have no knowledge of it. You area stock market advisor. Advice him about the working of Demat account, so that he could trade in securities.

A question and three statements labeled (I), (II) and (III) a,e given. You have to decide which state.ment(s) is/a,e sufficient to answer the question_ Question: Can you make an overall assessment of the present level of stock market index today? Statements: l Today, the stock market index has reached lower than the lowest during the last 3 years . II. During the last year, the index fluctuated between 30,360 and 28,255 III. The stock market index touched a low of 27,125 in the prnceding 3 years

The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Only short-term buyers or sellers provide effective exit route to the primary market.

The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Active secondary market provides liquidity to the transactions in primary market.