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 4th Jan, 2024
Answer (1)
Team Careers360 15th 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

UEI Global, Hotel Management ...
Apply
Training & Placement Guarantee | Top Recruiters: The Oberoi, Taj, Lee Meridien, Hyatt and many more
VIT Bhopal University | M.Tec...
Apply
M.Tech admissions open @ VIT Bhopal University | Highest CTC 52 LPA | Apply now
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
IBSAT 2025-ICFAI Business Sch...
Apply
IBSAT 2025-Your gateway to MBA/PGPM @ IBS Hyderabad and 8 other IBS campuses | Scholarships worth 10 CR
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
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