Stock Market Vocabulary and Expressions debt market liquid investment up-and-coming counterparty liquidity im

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问题 Stock Market
Vocabulary and Expressions
debt market    liquid investment      up-and-coming     counterparty
liquidity       immoveable assets     clearinghouse      default
securities      indicator
The existence of exchanges ensures neither buyer nor seller could default on the transaction.
Stock Market
   The stock market is one of the most important ways for companies to raise money, along with debt markets which are generally more imposing but do not trade publicly. This allows businesses to be publicly traded, and raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors enables their holders to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as property and other immoveable assets. Some companies actively increase liquidity by trading in their own shares.
   History has shown that the price of stocks and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country’s economic strength and development.
   Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions.
   Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.
   The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased prosperity, although some controversy exists as to whether the optimal financial system is bank-based or market-based.

选项 A、正确
B、错误

答案A

解析 根据原文“Exchanges also act as the clearinghouse for each transaction,meaning that this eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction”,交易所的存在保证买卖双方不会违约,所以此题正确。
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