Mr. Rajeev is a reputed stockbroker dealing in major stock exchanges.…

Mr. Rajeev is a reputed stockbroker dealing in major stock exchanges. Sam, a retail investor, contacted him about buying shares of XYZ ltd. Rajeev's terminal indicated that the shares could be bought at the price mentioned, and the order was executed electronically. Later, ______________ was issued to Sam by Mr. Rajeev.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Trade confirmation slip

Option (1) Demat account — Incorrect. A demat account is opened by the investor before trading starts, to hold shares in electronic form. The broker does not issue it after a deal.
Option (2) Trade confirmation slip — Correct. In the trading procedure, once the shares can be bought at the price mentioned, the order is executed electronically and the broker issues a trade confirmation slip to the investor. Within 24 hours he then issues a contract note.
Option (3) Unique order code — Incorrect. This number is given to each transaction by the stock exchange and is printed on the contract note. It is not a document issued to Sam.
Option (4) Order confirmation slip — Incorrect. This slip is issued earlier, when the investor places the order. Here the order has already been executed.

Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. The trade confirmation slip left the new NCERT, but it still reached the exam hall on time. The trading steps are one short page in the pre-rationalised book.

NCERT (Pre-rationalised Edition): “Steps in the Trading and Settlement Procedure … 3. The investor then places an order with the broker to buy or sell shares. Clear instructions have to be given about the number of shares and the price at which the shares should be bought or sold. The broker will then go ahead with the deal at the above mentioned price or the best price available. An order confirmation slip is issued to the investor by the broker.
4. The broker then will go on-line and connect to the main stock exchange and match the share and best price available.
5. When the shares can be bought or sold at the price mentioned, it will be communicated to the broker’s terminal and the order will be executed electronically. The broker will issue a trade confirmation slip to the investor.”

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Trade confirmation slip

Option (1) Demat account — Incorrect. A demat account is opened by the investor before trading starts, to hold shares in electronic form. The broker does not issue it after a deal.
Option (2) Trade confirmation slip — Correct. In the trading procedure, once the shares can be bought at the price mentioned, the order is executed electronically and the broker issues a trade confirmation slip to the investor. Within 24 hours he then issues a contract note.
Option (3) Unique order code — Incorrect. This number is given to each transaction by the stock exchange and is printed on the contract note. It is not a document issued to Sam.
Option (4) Order confirmation slip — Incorrect. This slip is issued earlier, when the investor places the order. Here the order has already been executed.