QS Study

Modern Approach Procedures for Transaction in Stock Exchange

There are some specific rules and regulations regarding buying and selling of shares, stock, bonds etc in a stock exchange. Though the rules and regulations differ slightly all over the world most of them are almost same.

An automated on-line system is a modern approach to trading on the stock exchange. In this system, it is not mandatory to be present anyone in the spot of the stock exchange. In that, the transactions are made online. Anyone can transact in this system but at first, he has to be a member of any agent or brokerage house. In the spot of the stock exchange, the price is displayed by big monitors in where the time-based prices of securities are shown. Anyone can buy or sell securities from any place and all over the world.

In various place the countrywide, the agents arrange the display program or one can watch them online. One can buy and sell securities by informing his agent. The members have accounts to the agents and the agents have access to the accounts. This is the easiest system of trading. Anyone can buy or sell shares and securities from his own place connecting online. It is easier to bid the stocks. In DSE and CSE the automated online trading system is working. The only mandatory of this system is that one has to have a B/O account and another account to the brokerage house through which he can make a transaction on the stock exchange.

Related Study: