Business Studies

Financial Markets

Easy

What among the following is not an advantage of 'Electronic Trading System'?

It ensures transparency by allowing participants to see the price of all securities.

It reduces the efficiency of operations by allowing reduction in time, cost and risk of any error.

It increases the efficiency of information being passed on.

Anyone can sell or buy the securities through brokers or members.

✅ Correct Option: 2

Electronic trading increases, not reduces, operational efficiency by cutting time, cost and risk of error. The statement in option 2 wrongly says it 'reduces the efficiency of operations', so it is not an advantage as stated. Transparency, faster information flow and wide access through brokers are genuine advantages.

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The methods of floatation of new issues in primary market doesn't include:

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Identify, which of the following is not a function of Stock Exchange?

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"An instrument that helps to mobilise large amounts of money in short period by commercial banks".

Identify the money market instrument stated above :

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Which of the following is not associated with Bombay Stock Exchange?

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Rohit wanted to buy 200 shares of a tech company. He contacted a stock exchange broker to buy the said shares. The broker opened his DEMAT account and placed an order to buy shares. He then went online to connect to the main stock exchange and matched the shares and the best price available. When the shares can be bought at the mentioned price, it will be communicated to the brokers terminal and the order will be executed electronically. The next step involved in the trading and settlement procedure would be:

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To whom an investor has to first approach if he wishes to buy or sell any security?

What among the following is not an advantage of 'Electronic Trading System'?

Solution

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