Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match List I with List II.

List I List II
A. Pay in day I. When the share are bought or sold, it is communicated to broker
B. Contract note II. The day when exchange will deliver the share
or make payment to other broker
C. Pay out day III. The day when the broker shall make payment
or delivery of shares to exchange
D. Trade confirmation slip IV. The document containing details of shares bought/sold,
price of share, date and time of deal

 Choose the correct answer from the options given below.

Options:

A-III, B-IV, C-I, D-II

A-III, B-IV, C-II, D-I

A-II, B-I, C-III, D-IV

A-III, B-I, C-II, D-IV

Correct Answer:

A-III, B-IV, C-II, D-I

Explanation:

The correct answer is option (2)- A-III, B-IV, C-II, D-I.

List I List II
A. Pay in day III. The day when the broker shall make payment
or delivery of shares to exchange
B. Contract note IV. The document containing details of shares bought/sold,
price of share, date and time of deal
C. Pay out day II. The day when exchange will deliver the share
or make payment to other broker
D. Trade confirmation slip I. When the share are bought or sold, it is communicated to broker

 

  • Pay in day- The day when the broker shall make payment or delivery of shares to exchange.
    Pay-in day refers to the day when the broker is required to make payment or deliver the shares to the exchange. Essentially, this is the deadline for the broker to transfer either the shares or the cash payment to the exchange, which is part of the settlement process in securities trading.
  • Contract note- The document containing details of shares bought/sold, price of share, date and time of deal.
    A contract note is a legal document issued by a broker to confirm the details of a buy or sell transaction. It contains specific information. It is important for the record-keeping and is used for future reference, ensuring that both parties (the buyer and seller) have an accurate record of the transaction. This document is generated immediately after the transaction is executed.
  • Pay out day- The day when exchange will deliver the share or make payment to other broker.
    Pay-out day refers to the day when the exchange makes the payment or delivers the shares to the other broker (or party in the transaction). On this day, the exchange settles the transaction by either delivering the shares or making the payment for the transaction. After the pay-in day (where the broker submits shares or payment), the exchange processes the transaction and ensures that the corresponding shares or cash are delivered to the correct party. Pay-out day is essentially the completion of the settlement.
  • Trade confirmation slip- When the share are bought or sold, it is communicated to broker.
    A trade confirmation slip is a document or notification that communicates the details of a buy or sell transaction to the broker. It serves as a form of acknowledgment of the transaction that took place.