Stock exchange market deals with

Step 1: Analyze the question The question asks what the stock exchange market deals with, meaning its main function.

Step 2: Explain the concept A stock exchange is an organised market where already-issued shares, stocks, bonds, and other securities are bought and sold. There are two parts to the capital market:

• Primary market: new securities are issued for the first time, for example through an IPO or public offer.
• Secondary market: existing securities are resold between investors. The Nigerian Exchange (NGX), formerly the Nigerian Stock Exchange, is mainly this kind of market.

Step 3: Evaluate the options

• A. Exchange of commodities: This is a commodity exchange, not a stock exchange. Wrong.
• B. Exchange of stock fish for stock: This is a joke option. Stockfish is dried fish and has nothing to do with the market. Wrong.
• C. Exchange of treasury bills: Treasury bills are short-term government securities traded in the money market, not the stock exchange. Wrong.
• D. Sales of foreign exchange: This belongs to the foreign exchange market. Wrong.
• E. Sales of second-hand securities: Securities that have already been issued are resold on the stock exchange, so this is the secondary market. Correct.

Step 4: Answer The stock exchange deals with the buying and selling of existing (second-hand) securities such as shares and bonds.

Tip: Link "Stock Exchange" with "Secondary market" and "second-hand". If you see "second-hand securities" in an option, it is usually the answer. Treasury bills go with the money market, and shares and bonds go with the capital market.