________ enhances the encashability of shares by promoting capital formation indirectly.
________ enhances the encashability of shares by promoting capital formation indirectly.
Solution
✅ Correct Option: 3
The secondary market (stock exchange) provides liquidity and marketability to existing securities, enhancing the encashability of shares, and thereby indirectly promotes capital formation by encouraging investment in the primary market. Hence the answer is Secondary Market.
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