Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

The process of holding securities in an electronic form is known by a specific term. Identify the term.

Options:

Dematerialisation

Disinvestment

Investment

 Capital formation

Correct Answer:

Dematerialisation

Explanation:

 

This is a process where securities held by the investor in the physical form are cancelled and the investor is given an electronic entry or number so that she/he can hold it as an electronic balance in an account. This process of holding securities in an electronic form is called dematerialisation.