Question : Case Study 28
GHI Enterprises is an established company that has recently listed its shares on a stock exchange. The company's management is considering different brokers for trading its shares.
Question :
After selecting a broker, what is the immediate next step in the trading process for GHI Enterprises?
Option 1: Placing an order
Option 2: Dematerialization
Option 3: Settlement
Option 4: Opening a demat account
Correct Answer:
Placing an order
Solution : The correct answer is (a) Placing an order
Placing an order involves specifying the details of the trade, including the type of security to be bought or sold, the quantity, the desired price, and any other relevant information. The broker then executes this order in the stock market on behalf of GHI Enterprises. Dematerialization and opening a demat account are essential steps in the broader trading process, but they usually occur before placing an order. Settlement is a subsequent step where the actual transfer of securities and funds occurs after a trade is executed. However, placing an order is the immediate next step right after selecting a broker.
