Question

______ is the process of holding securities in electronic form. 

Options

• Financial Intermediation

• Dematerialisation

• Allocative function

• Mobilisation of securities 

Answer 1

Dematerialisation is the process of holding securities in electronic form. 

Explanation:

The procedure whereby an investor's physical securities are cancelled and they are assigned an electronic entry or number that they can use to hold the securities as an electronic balance in an account. Dematerialization is the process of holding securities in an electronic format.