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Question : What is the primary role of a registrar and transfer agent (RTA) in the financial market?

Option 1: Executing trades on behalf of investors
  

Option 2: Assessing the creditworthiness of issuers
  

Option 3: Maintaining records of shareholders and handling share transfers

  

Option 4: Issuing credit ratings for securities


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Maintaining records of shareholders and handling share transfers


Solution : The correct answer is (c) Maintaining records of shareholders and handling share transfers.

A registrar and transfer agent (RTA) is a company that is responsible for maintaining records of shareholders and handling share transfers. RTAs also provide other services to companies and investors, such as issuing share certificates, sending dividend payments, and processing proxy votes.

Here are some of the specific tasks that an RTA may perform:

Maintain a registry of shareholders

Issue share certificates

Handle share transfers

Process dividend payments

Maintain investor records

Send proxy materials

Respond to investor inquiries

RTAs play an important role in the financial market by ensuring that the ownership of shares is properly recorded and that share transfers are processed smoothly. They also provide a valuable service to investors by helping them to track their investments and to receive their dividends and other payments.

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