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Question

Arrange the steps in the procedure for an investor who wants to buy securities on a stock exchange:

1. Selection of broker
2. Opening Demat account with a depository

3. Place the order with the broker

4. Settlement

5. Execution of order by the broker on the instruction of the investor


A

1, 3, 2 , 4 & 5

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B

1, 2, 4, 3 & 5

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C

1, 4, 2 , 3 & 5

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D

1, 2, 3, 5 & 4

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Solution

The correct option is D

1, 2, 3, 5 & 4


Procedure to buy securities by an investor are:

1. Selection of broker

2. Opening Demat account with a depository

3. Place the order with the broker

4. Execution of order by the broker on the instruction of the investor

5. Settlement


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