ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They can buy a 401(k) plan through a bank.
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They can buy futures in corporate bonds.
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They can buy them directly on the Internet.
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They have to use a stockbroker.
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Detailed explanation-1: -A trading account is used to purchase and sell shares in the stock market. Once you have a Demat Account to hold the shares virtually, you need a Trading Account to complete the buy and sell transaction. While purchasing shares online, you have to quote your unique Trading Account number.
Detailed explanation-2: -To buy stocks, you’ll typically need the assistance of a stockbroker, since you cannot simply call up a stock exchange and ask to buy stocks directly. When you use a stockbroker, whether a human being or an online platform, you can choose the investment that you wish to buy or sell and how the trade should be handled.
Detailed explanation-3: -If you are not an employee, you can buy stock from a company directly through either a Direct Stock Purchasing Program (DSPP) or a Dividend Reinvestment Plan (DRIP). By purchasing stock through a DSPP or DRIP, you can bypass brokers and brokerage fees to buy stock directly from your company of choice.
Detailed explanation-4: -Find a DP on the website of CDSL or NSDL. Once you have found a DP, contact them and request to open a Demat Account. The DP will provide you with an application form. Add a copy of proof of identity and address (PAN, Aadhaar, voter’s ID, electricity bill, ration card, etc.) More items