"Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues" - which function of stock exchange is highlighted by the given statement?
"Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues" - which function of stock exchange is highlighted by the given statement?
Solution
✅ Correct Option: 2
When savings are repeatedly moved into their most productive investment avenues through disinvestment and reinvestment, capital formation rises and economic activity expands. This describes the stock exchange function of contributing to economic growth.
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