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    Question

    An account in which trading of shares is done?   

    A Demat account Correct Answer Incorrect Answer
    B Nostro Account Correct Answer Incorrect Answer
    C Vostro Account Correct Answer Incorrect Answer
    D Escrow Account Correct Answer Incorrect Answer
    E FCNR Account Correct Answer Incorrect Answer

    Solution

    Shares and securities are held electronically in a dematerialized (or Demat) account, instead of the investor taking physical possession of certificates. A Demat account is opened by the investor while registering with an investment broker (or sub-broker). The Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting.

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