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Question : Case Study 72

OPQ Corporation is a conglomerate planning to trade its shares on a stock exchange. The company's management is reviewing the roles of stockbrokers.

Question : 

OPQ Corporation has engaged a broker to facilitate its share trading. What is the role of a broker in the stock market?

Option 1: Listing companies on stock exchanges
 

Option 2: Setting interest rates
 

Option 3: Matching buy and sell orders

 

Option 4: Issuing new sharess


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Matching buy and sell orders


Solution : The correct answer is (c) Matching buy and sell orders

A broker in the stock market facilitates the buying and selling of securities by acting as an intermediary between buyers and sellers. Their primary role is to match buy and sell orders from different investors. When an investor wants to buy or sell shares, they place an order through their broker, and the broker matches the order with another investor looking to do the opposite (buy or sell). This matching process helps in executing trades and ensuring liquidity in the market. The broker earns a commission or fee for facilitating these transactions.

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