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(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.

Identify the correct sequence of trading & settlement procedure:

Solution

Correct Option: 1
  1. (A) Sign broker-client agreement ... establishes relationship.
  2. (B) Open 'Demat' account ... holds securities electronically.
  3. (C) Order confirmation slip ... verifies transaction details.
  4. (D) Broker connects to exchange ... executes trade online.

Correct sequence: Option 1: (A) → (B) → (C) → (D)

Page 263 NCERT (Last Paragraph)

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