Stock exchanges are the official places where investors buy and sell securities. A stock exchange provides facilities and infrastructure such as trading and clearing systems, so that investors may trade securities easily, hence reducing the risk of investing. On the other hand, over the counter (OTC) is considered an unofficial market. This is because the securities are not traded on a formal market.

1. Elaborate TWO (2) main roles of the Securities Commission and Bursa Malaysia with regard to securities trading. (4 Marks)
2. Securities trading in the OTC market is riskier than that of the stock exchange. Why? (3 Marks)