n NISM Certifications
VII NISM Series VII
Medium

The stock broker must validate trade orders placed by investors before routing them through the _________.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Sub Broker

  2. B

    Clearing Bank

  3. C

    Branches

  4. Exchange

    Correct answer

Why this is the answer

After the order is entered and confirmed by the client/dealer, the broker’s software verifies it, and then the order is routed to the Exchange for execution.

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