Statement-I: The basic function of a stock exchange is indeed the creation of a continuous market where securities (such as stocks, bonds, etc.) are bought and sold. This function facilitates the trading of securities among investors.
Statement-II: Stock exchanges provide liquidity and easy marketability to already existing securities in the market. Liquidity refers to the ease with which securities can be bought or sold without significantly affecting their price. Stock exchanges achieve this by providing a platform where buyers and sellers can readily trade securities, thereby enhancing their marketability.