Answer (D) is correct . Securities markets facilitate investment by providing a marketplace for investors to conduct inexpensive transactions efficiently. Thus, investors are assured that they will have a place to buy and sell securities. Securities markets can handle continuous transactions that are based on the values and judgments of investors. Securities markets increase liquidity of securities by providing a marketplace. Thus, prices are relatively stable due to smaller price changes. Securities markets also facilitate the issuance and purchase of new securities.
Answer (A) is incorrect because Securities markets are a marketplace in which efficient and inexpensive transactions take place.
Answer (B) is incorrect because Security prices are more stable due to smaller price changes.
Answer (C) is incorrect because Securities markets continuously handle a large number of transactions.
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