Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:
On this day, the exchange will deliver the share or make payment to the other broker,
Options:
Pay-in day
Pay-out day
Transaction Day
None of the above
Correct Answer:
Pay-out day
Explanation:
On the T+2 day, the exchange will deliver the share or make payment to the other broker. This is called the pay-out day. The broker then has to make payment to the investor within 24 hours of the pay-out day since he has already received payment from the exchange.