Multiple choice general knowledge

Any entity engaged in the activity of clearing and settlement of trades on any recognised stock exchange is referred to as

  1. Clearing Corporation or clearing house.

  2. Settlement Guarantee Association.

  3. Clearing Member.

  4. Continous Net Settlement House.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A clearing corporation or clearing house is the entity responsible for clearing and settlement of trades on stock exchanges. It acts as an intermediary between buyers and sellers, ensuring smooth transaction completion. Settlement Guarantee Association provides guarantees but doesn't handle clearing, while Clearing Member is a participant who trades through the clearing house.

Keep practicing — related questions