n NISM Certifications
VII NISM Series VII
Medium

Registered stock brokers must validate client orders before routing them through the _______.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Depository

  2. B

    Clearing Bank

  3. C

    Authorised Person

  4. Exchange

    Correct answer

Why this is the answer

After client confirmation, the broker’s system validates and routes the order to the Exchange. The Exchange then assigns a unique order number and time stamp for tracking and confirmation.

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