Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Arrange the following steps involved in the screen trading for buying and selling of securities.

(A) Broker goes online, connects with stock exchange and matches the share with best price available.

(B) Approach a registered broker or sub-broker

(C) Placement of order with broker

(D) Open a demat account with depository participant.

(E) After shares are bought/sold, communication to broker's terminal and order executed.

Choose the correct answer from the options given below :

Options:

(B), (D), (A), (C), (E)

(D), (B), (A), (C), (E)

(C), (A), (B), (D), (E)

(B), (D), (C), (A), (E)

Correct Answer:

(B), (D), (C), (A), (E)

Explanation:

The correct answer is option (4) : (B), (D), (C), (A), (E)

The correct sequence of steps involved in the screen-based trading for buying and selling securities is as follows:

(B) Approach a registered broker or sub-broker: This is the initial step where an individual or entity interested in buying or selling securities approaches a registered broker or sub-broker.

(D) Open a demat account with a depository participant: To trade in electronic or dematerialized form, one needs to open a demat account with a depository participant, which holds securities electronically.

(C) Placement of order with the broker: Once the demat account is in place, the investor places an order with the broker to buy or sell specific securities.

(A) Broker goes online, connects with the stock exchange, and matches the share with the best price available: The broker, using an online trading platform, connects to the stock exchange and matches the investor's order with the best available price in the market.

(E) After shares are bought/sold, communication to the broker's terminal and order executed: Once the trade is executed, there is communication back to the broker's terminal to confirm the transaction.

So, the correct answer is:

(4)(B), (D), (C), (A), (E)