9 Views

Question : Case Study 30

LMN Corporation is a conglomerate that has executed trades on a stock exchange. The company's management is preparing for the settlement process.

Question : 

What does the settlement process involve after LMN Corporation executes trades on the stock exchange?

Option 1: Selecting a broker
 

Option 2: Matching buy and sell orders
 

Option 3: Transferring ownership and funds

 

Option 4: Opening a demat account


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Transferring ownership and funds

 


Solution : The correct answer is (c) Transferring ownership and funds

The settlement process, after LMN Corporation executes trades on the stock exchange, involves transferring ownership and funds. In this phase, the actual transfer of securities (ownership) and funds (money) occurs between the buyer and the seller. The securities are moved from the seller's demat account to the buyer's demat account, and the funds are transferred from the buyer to the seller.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
SCSVMV Deemed to be Universit...
Apply
MBA At at SCSVMV | NAAC 'A' Grade | AICTE & UGC Aproved | 100% Placement Support | Merit-based Scholarships
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
VIT Bhopal University | B.Arc...
Apply
Mark presence in the Modern Architectural field with Bachelor of Architecture | Highest CTC : 70 LPA | Accepts NATA Score
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books