Match the items of List – I with those of the List – II and choose the correct code : List – I List –…
In stock exchange terminology: Listing is the formal admission of securities for trading on a recognised stock exchange (iii); Arbitrage is the simultaneous purchase and…
Choose your answer
Match the items of List – I with those of the List – II and choose the correct code :
List – I
List – II
a. Process of admitting securities for trading on a recognised stock exchange
i. Jobber
b. Device adopted to make profit out of the difference in prices of a security in two markets.
ii. Badla Transaction
c. The facility to carry forward a transaction from one settlement period to another
iii. Listing
d. An independent broker who deals in securities on his own behalf
iv. Arbitrage
Answer and explanation
Correct answer B
In stock exchange terminology: Listing is the formal admission of securities for trading on a recognised stock exchange (iii); Arbitrage is the simultaneous purchase and sale of the same security in two different markets to profit from price differentials (iv); a Badla transaction is a carry-forward facility from one settlement period to the next (ii); and a Jobber is an independent dealer who trades in securities on their own account for a turn/spread (i).
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UGC NET Commerce