Concept:The stock exchange is part of the capital market where long-term financial assets are traded.
Explanation:Securities traded on a stock exchange include ordinary shares, preference shares, and debentures.
These are long-term instruments issued by companies and governments to raise capital.
Buying and selling on the exchange involves mature securities that investors hold for long periods.
By contrast, short-term instruments like treasury bills and commercial papers are traded in the money market, not on the stock exchange.
The stock exchange does not deal in all types of securities because short-term instruments are excluded from its operations.
Similarly, medium-term securities are not the primary focus of the stock exchange.
Therefore, the stock exchange specifically serves as a market where long-term securities are bought and sold.
Answer:A. Long-term securities are sold