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
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.
Question : The function of credit rating agencies is to:
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