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Question
Angel Ltd., a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is ______.
Options
Operating Activity
Investing Activity
Financing Activity
General Activity
MCQ
Fill in the Blanks
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Solution
Angel Ltd., a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is Operating Activity.
Explanation:
Angel Ltd. is a stock broker, which means it is a financial enterprise whose core business is dealing in securities. For financial companies, buying and selling shares is part of their regular, day-to-day trading operations to earn revenue. Therefore, purchasing shares is classified as an Operating Activity for them, unlike non-financial companies where such a purchase would be considered an Investing Activity.
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