Functions of a Stock Exchange|Trading and Settlement Procedure

Trading And Settlement Procedure On Stock Exchange

Stock Exchange And Its Functions

Radhika got 10, 00,000 rupees after selling her parental property which she had got as a gift from her grandmother. Her friend advised her to invest in securities in the stock market. Radhika was unaware of the procedure for the same. Her friend introduced her to a stock broker, who was registered with the National Stock Exchange. Radhika approached the broker. The broker guided her to open a DEMAT account with a Depository, as well as a Bank account. Radhika opened a Bank account & DEMAT account with Exin Bank. (a) Identify the steps in the trading procedure for buying and selling of securities which have been discussed above. (b) State the next four steps of the trading procedure.

A Stock Exchange is a place where finanacial assets can be converted into cash. It helps in fixing the market value of securities and helps to know the economic growth of any country. (i) State the functions of state exchange refused in above parta. (ii) State any other two functions of stock Exchange.

Rahul's father is often seen operating on his laptop for hours, dealing in shares. He spends ample time on studying share prices listed on the stock exchange. As a market, the stock exchange facilitates the exchange of securities into money and vice-versa. (i) State two functions of stock exchange. (i) By performing such functions what values does the stock exchange fulfill?