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The following steps are involved in the screen based trading for buying and selling of securities. Arrange them in correct sequence:

(A) The investor opens a demat account with a depository participant for holding and transferring securities in demat form.

(B) The broker goes online and connects with the main stock exchange and matches the share and best price available.

(C) The investor places an order with the broker to buy or sell shares.

(D) The investor signs a broker client agreement and client registration form.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

In screen-based trading, the investor first signs the broker-client agreement and client registration form (D), then opens a demat account with a depository participant (A), then places a buy or sell order with the broker (C), after which the broker connects to the exchange and matches the best price (B). Sequence: (D), (A), (C), (B).

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