These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this there is another market in which unsecured and short-term debt instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.
(a) Name the function being performed by the market in the above case.
(b) Also, explain briefly three other functions performed by this market.

i. The function performed by the market in the given case is Allocative function. By facilitating the sale and purchase of securities, the stock market helps in channelising the savings to most productive investment.

ii. Three other functions performed by the market area: 
a. Provides Liquidity and Marketability: The stock exchange provides a platform where sale and purchase of existing securities can take place. In this way, the stock exchange facilitates the easy conversion of securities to cash as and when required. In addition, it renders liquidity to long-term securities and can be converted to medium-term and short-term securities.
b. Determination of Prices: A stock exchange provides a plat form for the interaction of buyers and sellers. In other words, it helps in the interaction of demand and supply forces in an economy and thereby helps in establishing the price of securities.
c. Reduces cost of transaction: stock trade reduces the cost of transaction in terms of money time and efforts and is an easier approach towards online trade of securities.