Ram selects a person who is authenticated to buy/sell securities on his behalf. He is registered by SEBI.
Through this person Ram opens an account with a bank. Then he takes the next step. He gives this person an order in which he specifies the number and types of securities to be bought or sold. The process moves
forward. After getting the instructions from Ram the selected person buys and issues the paper. The paper
contains the name and price of securities, brokerage charges and the name of the parties involved. Then
comes the concluding stage of the process. Here, the trading of securities is done by the selected persons on
behalf of Ram.
Q. Name the paper being highlighted in the above case.
a) Agreement
b) Contract Note
c) Credit Note
d) Debit Note
Q. Which type of account is being indicated here?
a) Capital A/c
b) Savings A/c
c) Current A/c
d) Demat A/c
Q. What is the role of the person to whom Ram has selected?
a) Manager
b) Broker
c) Financial Analyst
d) Agent
Q. What is the last stage of the process called?
a) Settlement
b) preliminary check
c) Collection of information d) None of the above
Answers
Answer:
Ram selects a person who is authenticated to buy/sell securities on his behalf. He is registered by SEBI.
Through this person Ram opens an account with a bank. Then he takes the next step. He gives this person an order in which he specifies the number and types of securities to be bought or sold. The process moves
forward. After getting the instructions from Ram the selected person buys and issues the paper. The paper
contains the name and price of securities, brokerage charges and the name of the parties involved. Then
comes the concluding stage of the process. Here, the trading of securities is done by the selected persons on
behalf of Ram.
Q. Name the paper being highlighted in the above case.
a) Agreement
b) Contract Note
c) Credit Note
d) Debit Note
Q. Which type of account is being indicated here?
a) Capital A/c
b) Savings A/c
c) Current A/c
d) Demat A/c
Q. What is the role of the person to whom Ram has selected?
a) Manager
b) Broker
c) Financial Analyst
d) Agent
Q. What is the last stage of the process called?
a) Settlement
b) preliminary check
c) Collection of information d) None of the above