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 :
What is the process called when GHI Enterprises evaluates and chooses a broker to facilitate its share trading?
Option 1: Trading procedure
Option 2: Dematerialization
Option 3: Selection of brokers
Option 4: Placing an order
Correct Answer: Selection of brokers
Solution : The correct answer is (c) Selection of brokers
When GHI Enterprises evaluates and chooses a broker to facilitate its share trading, this process is referred to as the selection of brokers. It involves the company considering and assessing various brokerage firms to determine which one will best suit its needs for trading its shares on the stock exchange. The company evaluates factors such as services offered, fees, reputation, reliability, and other relevant criteria before making a decision on which broker to engage.
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