Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Identify the correct sequence of steps involved in the screen based trading for buying and selling of securities on stock exchange.

A. Open a beneficial owner account with the depository participant.

B. The trade has been executed within 24 hours and a contract note is issued.

C. A registered broker is approached

D. Place an order with the broker

E. The settlement cycle is on T+2 day on rolling settlement basis.

Choose the correct answer from the options given below :

 

Options:

A, B, D, C, E

A, C, D, B, E

C, A, D, B, E

C, B, D, A, E

Correct Answer:

C, A, D, B, E

Explanation:

The correct answer is option (3) : C, A, D, B, E

The correct sequence of steps involved in screen-based trading for buying and selling securities on the stock exchange is:

1. C. A registered broker is approached.

2. A. Open a beneficial owner account with the depository participant

3. D. Place an order with the broker.

4. B. The trade has been executed within 24 hours and a contract note is issued.

5. E. The settlement cycle is on T+2 days on a rolling settlement basis.

Therefore, the correct answer is: 3. C, A, D, B, E.