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Question

Simultaneous purchase and sale of the same stock in two different markets is known as ______________.

A
basket trading
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B
badla
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C
arbitrage
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D
margin trading
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Solution

The correct option is C basket trading
A basket trade is an order to buy or sell a group of securities simultaneously. Basket trading is essential for institutional investors and investment funds who wish to hold a large number of securities in certain proportions.

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