n NISM Certifications
VII NISM Series VII
Medium

_______ is used when there is a default in delivery by a broker.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Delta Hedging

  2. B

    Return

  3. C

    Sale

  4. Auction

    Correct answer

Why this is the answer

The stock exchange conducts an auction to deliver shares to the buyer in case of a seller’s default.

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