Write the Trading and Settlement Procedure on a Stock Exchange

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asked Jan 12, 2018 in Business Studies by jisu zahaan (28,760 points) 26 374 808
Write the Trading and Settlement Procedure on a Stock Exchange

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answered Jan 12, 2018 by faiz (82,347 points) 6 6 11

1. Selection of Broker: In order to trade on a Stock Exchange first a broker is selected who should be a member of stock exchange as they can only trade on the stock exchange.
2. Opening Date Account with Depository.
3. Placing the order: After selecting a broker, the investors specify the type and number of securities they want to buy or sell.
4. Executing the order: The broker will buy or sell the securities as per the instructions of the investor.
5. Settlement: Any trade taking place gets settled within 2 days of the trade date.

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