Question : Case Study 32

RST Enterprises is a conglomerate that wants to trade its shares on a stock exchange. The company's management is in the process of selecting a brokerage firm.

Question : 

What role does the selected brokerage firm play in the trading process for RST Enterprises?

Option 1: Matching buy and sell orders
 

Option 2: Transferring ownership of shares
 

Option 3: Facilitating transactions

 

Option 4: Listing on stock exchange


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Facilitating transactions


Solution : The correct answer is (c) Facilitating transactions

The selected brokerage firm plays the role of facilitating transactions in the trading process for RST Enterprises. Brokerage firms act as intermediaries that facilitate the buying and selling of securities on behalf of their clients. They enable transactions by connecting buyers and sellers, executing trades, providing market research and advice, managing accounts, and ensuring compliance with regulations. The brokerage firm is crucial in facilitating smooth and efficient transactions on the stock exchange for RST Enterprises. Matching buy and sell orders is more related to the stock exchange itself. Transferring ownership of shares is part of the settlement process after a trade is executed. Listing on the stock exchange is a separate process where a company's shares are listed and made available for trading on the exchange.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books