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
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.
