n NISM Certifications
X NISM Series X
Medium

What is the term for the process of settling obligations among securities trade parties?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Settlement

    Correct answer

  2. B

    Clearing

  3. C

    Trading

  4. D

    Payment

Why this is the answer

Settlement involves the actual transfer of securities and funds to fulfill trade obligations, finalizing the transaction.

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