Practicing Success
Arrange the steps of trading procedure of stock exchange in the correct sequence A. Delivering the shares B. Placing an Order C. Opening a Demat Account D. Execution of the order E. Settlement of transaction Choose the correct answer from the options given below : |
C, A, B, D, E C, B, D, A, E B, A, D, C, E B, C, A, E, D |
C, B, D, A, E |
The correct answer is option (2) : C, B, D, A, E 1. Opening a Demat Account: The first step is to open a Demat account with a Depository Participant (DP) to hold the shares in electronic form. Therefore, option C matches the first step. 2. Placing an Order: The investor places an order with a broker to buy or sell shares of a particular company at a specific price. Therefore, option B matches the second step. 3. Execution of the Order: The broker executes the order by matching it with a corresponding order from another investor. Therefore, option D matches the third step. 4. Delivering the Shares : After the execution of the order, the shares are delivered to the Demat account of the investor. Therefore, option A matches the fourth step. |