Some Queries

#1
Hi everyone,

I am new to the forum so pls forgive me if i am posting in the wrong section of the forum......

I have just started off with learnin certain concepts about the markets, capitals, derivatives,etc.....just a cpl of queries I had in my mind....I'll be very grateful if sum1 can answer them:

1. If a depository participant has a security in the depository and the security undergoes a loss, who bears the loss? Does the participant bear the loss or the Depository itself too bears the loss????

2. I am a li'l confused between the use of the words trader and broker.....I thought both of them have the exact same meaning....but I've seen them as being used as 2 distinct terms in some references, pls tell me as to what the differences are between the two.....
 

sudoku1

Well-Known Member
#2
1. If a depository participant has a security in the depository and the security undergoes a loss, who bears the loss? Does the participant bear the loss or the Depository itself too bears the loss????

2. I am a li'l confused between the use of the words trader and broker.....I thought both of them have the exact same meaning....but I've seen them as being used as 2 distinct terms in some references, pls tell me as to what the differences are between the two.....
in the first case , the DP participant bears the loss.

TRADER: a person who trades in securities (buy or sell)
BROKER: a firm with whom the trader is registered 2 carry out his trading using the firm's facilities of live terminals :)
 

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