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What does the depository system enable regarding ownership?

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Question

What does the depository system enable regarding ownership?

Options

  • Ownership only during specified trading hours

  • Immediate transfer of ownership

  • A fixed maturity period for ownership

  • Ownership only after a credit rating is assigned

MCQ
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Solution

The depository system enables immediate transfer of ownership. This is a benefit of holding and transferring securities in demat form.

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