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:

 The correct answer is option 1- Dematerialisation.

The 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.