Advances in information technology have made dealings on stock exchanges accessible from anywhere in the country through ________.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → trading terminals
Option (1) depository participants — Incorrect. A depository participant keeps the investor’s demat account, where shares are held in electronic form.
Option (2) electronic fund transfer — Incorrect. Electronic fund transfer is needed for rolling settlement, so that payments move fast after a trade.
Option (3) registrars to the issue — Incorrect. A registrar to the issue is appointed by a company for an e-IPO of new securities.
Option (4) trading terminals — Correct. A stock exchange has a main computer system with many terminals spread across the country. So people can trade through these trading terminals from anywhere.
NCERT (Pre-rationalised Edition): “SECONDARY MARKET The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity and marketability to existing securities. It also contributes to economic growth by channelising funds towards the most productive investments through the process of disinvestment and reinvestment. Securities are traded, cleared and settled within the regulatory framework prescribed by SEBI. Advances in information technology have made trading through stock exchanges accessible from anywhere in the country through trading terminals. Along with the growth of the primary market in the country, the secondary market has also grown significantly during the last ten years.” |