Question : Case Study 82

XYZ Enterprises is a startup that aims to trade its shares on a stock exchange. The company's management is reviewing the concept of executing an order.

Question : 

What step immediately follows the execution of a trade order?

Option 1: Placing an order
 

Option 2: Dematerialization
 

Option 3: Settlement

 

Option 4: Opening a demat account


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Settlement


Solution : The correct answer is (c) Settlement

The step that immediately follows the execution of a trade order is "settlement." After a trade order is executed and the transaction is completed, the settlement process begins. Settlement involves the actual transfer of ownership of securities and funds between the buyer and the seller. This process ensures that the trade is settled in a systematic and secure manner, finalizing the transaction on the stock exchange.

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