Skip to content

State the… (Class 12 Business Studies SQP 2023-24, Q24b)

questionbuddy.in/q/cbse-12-business-studies-2023-24-sqp-q24b-first-steps-involved-screen-trading

Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Business Studies sample paper 2023-24: question 24(b)

From the official CBSE sample question paper for 2023-24, section B, question 24(b), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q24(b) · 3 marks · Short answerFinancial Markets

State the first three steps involved in the screen-based trading for buying and selling of securities.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Whom does the investor approach first?

Hint 2

Where will electronic shares be held?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Selecting a broker: The investor approaches a registered broker, signs a broker-client agreement and fills a client registration form (PAN, address, bank and depository details); the broker opens a trading account.

    1 mark

  2. Opening a demat account: The investor opens a demat (beneficial owner) account with a depository participant to hold and transfer securities electronically.

    1 mark

  3. Placing the order: The investor gives the broker clear instructions on the number of shares and the price; the broker executes at the best price and issues an order confirmation slip.

    1 mark

Answer: Selecting a broker, opening a demat account and placing the order.

Where the marks are

  • Three steps: 1 mark each

Revise the chapter

  • Chapter: Financial Markets (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Financial Markets, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.