The main item traded on a stock exchange market is

Step 1: Analyze the question We're asked what the main item traded on a stock exchange is.

Step 2: Explain the concept A stock exchange is a market where long-term securities are bought and sold. These include:

• Shares (equities) of public companies
• Government and corporate bonds/debentures

Other financial instruments belong to different markets:

• Treasury bills are short-term government securities traded in the money market.
• Travellers' cheques are payment instruments, not stock exchange securities.
• Foreign currencies are traded in the foreign exchange market.

Step 3: Work through the options

• A. Treasury bills: money market, so no.
• B. Travellers' cheque: not a security traded on the exchange, so no.
• C. Foreign currencies: foreign exchange market, so no.
• D. New shares: shares are the core item traded on a stock exchange. This is the best fit among the options.

A note on wording: Strictly speaking, the stock exchange mostly trades existing (second-hand) shares in the secondary market, while new shares are issued in the primary market.

Step 4: Answer The correct option is D. new shares.

Exam tip: Remember the split: Money market = short-term (treasury bills, commercial bills), Capital market/stock exchange = long-term (shares, bonds, debentures). If you see "shares" or "stocks" in the options for a stock exchange question, pick it.