Earlier, securities were bought and sold on the floor of the stock exchange. Now almost all exchanges have gone electronic, and trading has shifted from the stock market floor to the ________.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → broker’s office
Option (1) depository’s office — Incorrect. A depository holds securities in electronic form for investors. It does not trade them.
Option (2) office of SEBI — Incorrect. SEBI regulates the securities market. Trading is not done in its office.
Option (3) depository participant’s office — Incorrect. A depository participant opens and keeps the investor’s demat account. Orders are placed through a broker.
Option (4) broker’s office — Correct. Almost all exchanges have now gone electronic. Trading is done in the broker’s office through a computer terminal connected to the main exchange.
NCERT (Pre-rationalised Edition): “TRADING AND SETTLEMENT PROCEDURE … There was a time when in the open outcry system, securities were bought and sold on the floor of the stock exchange. Under this auction system, deals were struck among brokers, prices were shouted out and the shares sold to the highest bidder. However, now almost all exchanges have gone electronic and trading is done in the broker’s office through a computer terminal. A stock exchange has its main computer system with many terminals spread across the country. Trading in securities is done through brokers who are members of the stock exchange. Trading has shifted from the stock market floor to the brokers office. …” |