n NISM Certifications
VII NISM Series VII
Medium

When the selling broker fails to deliver shares, the stock exchange conducts an open market purchase, and the shares are delivered to the ______ broker.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Buying

    Correct answer

  2. B

    Selling

  3. C

    Depository

  4. D

    Clearing

Why this is the answer

The auction mechanism ensures the buying broker receives the shares, fulfilling the exchange's obligation.

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