Trusted by millions of Kenyans
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Describe the trading mechanism at NSE.

Describe the trading mechanism at NSE.

Answers


Kavungya
1. An investor approaches a broker who takes his bid/offer to the trading floor.
2. At the trading floor, the buying and selling brokers meet and seal the deal.
3. The investor is informed of what happened/transpired at the trading floor through a contract note. The note is sent to buying and selling investors.
The note contains details such as:
• Number of shares bought or sold
• Buying/selling price
• Charges/commission payable etc.
4. Settlement is made through the brokers.
5. Old share certificate is cancelled (for selling investor) and a new one is issued in the name of buying investor.
Kavungya answered the question on March 12, 2019 at 05:32

Answer Attachments

Exams With Marking Schemes

Related Questions