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 Form 4 Business studies lessons and notes on international trade

Procedure of buying and selling shares in stock exchange market

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Answer Text:
Procedure of buying and selling shares in stock exchange market:
Procedure of buying shares:
i. Opening a CDSC account through broker
ii. Filling in the purchase order form by stating the type and the number of shares to be bought
iii. The broker identifies and negotiate with the willing buyer
iv. The shares are then paid for through brokers at a commission
v. Shares are then transferred and credited in the buyers CDSC account
Procedure for selling shares:
i. Opening a CDSC account through broker
ii. Filling in the sales order by stating the price and the number of shares to be sold
iii. The buyer identifies and negotiate with the willing buyer
iv. The buyer pays for the shares through the broker
v. Shares are transferred and credited in the buyer’s CDSC account with the sellers CDSC account being debited


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