Cash and Margin Trading Market

Cash and Margin Trading Market

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Question

Which of the following is the current market in which all buying and selling is done on cash or margin basis?

Answers

Explanations

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A. B. C. D.

C

The current market in which all buying and selling is done on a cash or margin basis is the "Regular market," as stated in option C.

The regular market refers to the primary market where securities are issued to the public for the first time. In this market, the company or entity issuing the securities receives the proceeds of the sale, and the securities are traded among investors on a cash or margin basis.

Cash basis refers to the payment made upfront using cash, whereas margin basis means that the investor can buy securities on credit by borrowing funds from a broker. In a margin transaction, the broker requires the investor to put up a percentage of the purchase price as collateral.

The other options given in the question are not related to financial markets.

  • Target market refers to a specific group of customers or consumers that a company aims to reach with its products or services.
  • Historic market is not a financial term but may refer to a market that existed in the past or an area where historical items or artifacts are sold.
  • Borough market is a famous food market in London, UK, that has no connection with financial markets.

In conclusion, the correct answer to the question is option C, the regular market, where all buying and selling of securities are done on a cash or margin basis.