Identify the correct sequence of trading amp settlement procedure A The investor has to sign a broke...........

Business Studies (CUET) Previous Year Papers

Identify the correct sequence of trading & settlement procedure :

(A)The investor has to sign a broker client agreement.

(B)The investor has to open a 'Demat' Account.

(C)An order confirmation slip is issued to the investor by the broker.

(D)The broker will then go online and connect to the main stock exchange. Choose the correct answer from the options given below :

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CUET BUSINESS STUDIES Previous Year Paper (2024)

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

- Option 1, (A), (B), (C), (D):

- Correct order.

- (A): Sign a broker-client agreement. Establishes relationship.

- (B): Open a 'Demat' Account. Necessary for holding shares.

- (C): Order confirmation slip issued by broker post agreement and account setup.

- (D): Broker connects online to the stock exchange to place order.

- Option 2, (A), (C), (B), (D):

- Incorrect order. Order slip typically comes after account creation.

- Option 3, (B), (A), (D), (C):

- Incorrect order. Agreement precedes Demat account opening.

- Option 4, (C), (B), (D), (A):

- Incorrect order. Agreement required before order slip.

Correct Answer: Option 1, (A), (B), (C), (D)

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