Q.Lalita wants to buy shares of Akbar Enterprises through her broker Kushvinder. She has a demat account and a bank account for cash transactions in the securities market. Discuss the subsequent steps involved in the screen-based trading for buying and selling of securities in this case.

Since Lalita already has a demat account and a bank account, the subsequent steps are those of placing the order and settling the trade through her broker.

She places a buy order with clear instructions; the broker matches it on the exchange, executes it electronically and issues a trade confirmation; a Contract Note fo …

As Lalita already has a demat account and a bank account, the subsequent steps in the screen-based trading are:

1. Placing the order. Lalita places an order with her broker, Kushvinder, to buy the shares of Akbar Enterprises, giving clear instructions about the number of shares and the price. The broker issues an order confirmation slip.
2. Matching the order. The broker goes on-line, connects to the main stock exchange and matches the share at the best available price.
3. Execution and trade confirmation. When the shares can be bought at the mentioned price, the order is executed electronically and the broker issues a trade confirmation slip. …