n NISM Certifications
VII NISM Series VII
Medium

After a trade is executed by the broker on the stock exchange, the seller gives delivery instructions to his ______ to move securities from his account to the broker’s account.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Clearing Bank

  2. B

    Stock Broker

  3. Depository Participant

    Correct answer

  4. D

    Stock Exchange

Why this is the answer

The seller instructs the Depository Participant to transfer securities from his account to the broker’s account, which are then moved through the clearing process to the buyer.

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