1 View

Question : Case Study 75

ABC Corporation is a well-known company with its shares listed on a stock exchange. The company's management is reviewing the concept of dematerialization.

Question : 

In dematerialization, what replaces physical share certificates?

Option 1: Trading orders
 

Option 2: Dividend checks
 

Option 3: Electronic records

 

Option 4: Ownership deeds


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Electronic records


Solution : The correct answer is (c) Electronic records

In dematerialization, physical share certificates are replaced by electronic records. Dematerialization involves converting physical share certificates, which are paper-based, into an electronic format. The ownership and details of the shares are recorded electronically, and these electronic records are stored in a dematerialized or demat account. This process eliminates the need for physical share certificates and instead relies on digital records to represent ownership of shares.

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
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
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