n NISM Certifications
VII NISM Series VII
Medium

When a client places a sell order, which account is checked to confirm sufficient securities are available?

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

Options

  1. A

    Bank Account

  2. Demat Account

    Correct answer

  3. C

    Both 1 and 2

  4. D

    None of the above

Why this is the answer

Before a sell order is executed, the broker verifies the client’s demat account to ensure that the required number of securities is available for sale.

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NISM Series VII Mock Test 2