PriyaSahu

Blog by PriyaSahu

What is the role of a brokerage firm in stock trading?

By PriyaSahu - Comment(s)

       A brokerage firm helps people buy and sell stocks by acting as a middleman between investors and the stock market. It provides a platform to place orders, executes those orders quickly, and offers advice or research to help investors make better decisions.

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What is the role of a clearing house in futures trading?

By PriyaSahu - Comment(s)

       A clearing house acts as a middleman in futures trading, making sure buyers and sellers complete their trades safely. It guarantees that both parties will fulfill their contract terms and manages the risks involved. This helps traders trust th...

What is the role of a company’s debt-to-equity ratio in stock analysis?

By PriyaSahu - Comment(s)

       The debt-to-equity (D/E) ratio shows how much debt a company uses compared to its equity to finance its operations. It helps investors understand the company’s financial risk. A low D/E ratio means the company uses less debt and is generally safer. A high D/E rat...

What is the role of a company’s liquidity in its stock price performance?

By PriyaSahu - Comment(s)

       A company's liquidity plays a key role in its stock price performance because liquidity shows how easily the company can meet its short-term financial obligations. Good liquidity means the company can pay bills, debts, and other expenses on time, which ...

What is the role of a custodian in mutual fund operations?

By PriyaSahu - Comment(s)

       A custodian in mutual fund operations is responsible for safely holding and protecting the fund’s securities and assets. They ensure that all shares, bonds, and cash belonging to the mutual fund are secure, correctly recorded, and managed. Custodians help in the ...

What is the role of a custodian in mutual funds?

By PriyaSahu - Comment(s)

       A custodian in mutual funds holds and safeguards the fund’s securities and assets. They make sure all the shares, bonds, and cash owned by the mutual fund are kept safe and properly accounted for. The custodian acts as a trusted guardian who protects th...

What is the role of a depository in stock trading?

By PriyaSahu - Comment(s)

       A depository in stock trading holds your shares electronically and helps transfer them safely and quickly. It removes the need for physical share certificates and makes buying and selling stocks easier and faster. Depositories play a key role ...

What is the role of a distributor in mutual fund investments?

By PriyaSahu - Comment(s)

       A distributor plays an important role in mutual fund investments. They help investors understand different mutual fund options and guide them to choose the right funds based on their goals and risk comfort. Distributors make the process of investi...

What is the role of a financial advisor in stock investment decisions?

By PriyaSahu - Comment(s)

       A financial advisor helps you make smart stock investment decisions by understanding your goals, risk appetite, and current financial situation. They guide you in choosing the right stocks, timing your investments, and building a balanced portfolio that f...

What is the role of a financial advisor in stock market investing?

By PriyaSahu - Comment(s)

       A financial advisor guides you through stock market investing by offering expert advice, helping you pick the right stocks, planning your goals, and keeping your investments on track. They help you make informed choices, avoid common mistakes, and work to m...

What is the role of a focused mutual fund in an investment portfolio?

By PriyaSahu - Comment(s)

       A focused mutual fund plays a specific role in your investment portfolio by investing in a small number (up to 30) of carefully chosen stocks. It aims to provide higher returns by placing big bets on the best ideas, rather than spreading investments thin. ...

What is the role of a market maker in stock trading?

By PriyaSahu - Comment(s)

       A market maker plays a very important role in stock trading by ensuring there is always someone ready to buy or sell a stock. They provide liquidity to the market by offering continuous buy and sell quotes. This helps investors trade easily without ...

What is the role of a mutual fund custodian?

By PriyaSahu - Comment(s)

       A mutual fund custodian plays a very important role in protecting the assets of the fund. The custodian holds all the securities bought by the mutual fund safely and makes sure they are not misused. They also handle settlement of trades, check recor...

What is the role of a mutual fund sponsor in the fund's lifecycle?

By PriyaSahu - Comment(s)

       A mutual fund sponsor plays a key role in starting and running a mutual fund. The sponsor is like the promoter of the mutual fund. They take the first step to set up the fund, bring in capital, and form the Asset Management Company (AMC). They also ...

What is the role of a mutual fund’s compliance officer?

By PriyaSahu - Comment(s)

       The role of a mutual fund’s compliance officer is to make sure the fund follows all the rules and regulations set by authorities like SEBI. They ensure that the fund operates legally and ethically, protecting investors’ interests. The compliance officer checks th...

What is the role of a mutual fund’s net asset value (NAV) in pricing?

By PriyaSahu - Comment(s)

       The Net Asset Value (NAV) of a mutual fund is the price at which investors buy or sell units of the fund. It shows the value of one unit of the mutual fund on a given day. NAV is calculated by dividing the total value of all the fund’s assets minus its liabilitie...

What is the role of a registrar and transfer agent in mutual funds?

By PriyaSahu - Comment(s)

       A Registrar and Transfer Agent (RTA) in mutual funds handles all the important paperwork related to investors’ transactions. They keep track of who owns how many units in the fund. RTAs update records when investors buy, sell, or transfer mutual fund units. They ...

What is the role of a sponsor in a mutual fund?

By PriyaSahu - Comment(s)

       A sponsor in a mutual fund is the person or company that starts the fund. They are responsible for setting up the fund and providing the initial money and resources. The sponsor helps register the fund with the regulator and appoints the fund manager and trustees...

What is the role of a stock analyst in the market?

By PriyaSahu - Comment(s)

       A stock analyst studies companies, industries, and market trends to help investors make smart decisions. They analyze financial reports, news, and economic data to predict how stocks will perform. Their job is to give clear advice about which stocks to buy, hold,...

What is the role of a stock broker in buying and selling stocks?

By PriyaSahu - Comment(s)

       A stock broker plays a very important role in the stock market by helping people buy and sell stocks. They act as a bridge between the investor and the stock exchange. You cannot buy or sell shares directly on the stock market, so brokers do this work f...

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