Question : Case Study 78

GHI Ltd. is a conglomerate that has recently traded its shares on a stock exchange. The company's management is reviewing the process of placing an order.

Question : 

What is the first step in the process of trading securities on a stock exchange?

Option 1: Settlement
 

Option 2: Execution of the order
 

Option 3: Dematerialization

 

Option 4: Placing an order


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Placing an order


Solution : The correct answer is (d) Placing an order

The first step in the process of trading securities on a stock exchange is "placing an order." Investors initiate the trading process by placing orders to buy or sell securities at a specified price. Once the order is placed, it is then processed, matched with corresponding buy or sell orders, and eventually executed at the prevailing market price. After execution, the subsequent steps such as settlement, where the ownership and funds are transferred, take place.

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