Buying and selling securities, Financial Management

Buying and Selling Securities

One of the key features that may occur while investing in financial markets is that sometimes investors overlook the essential factors they should consider while buying or selling different securities. With the introduction of lower commission rates, growing competition, decreasing regulatory curbs and increasing public interest in investing, the financial markets are flourishing like never before. Today, there are a number of avenues from where one can buy and sell stocks, bonds, mutual funds, and many other financial instruments.

All these avenues can be categorized into four main heads. They are

(i) Brokerage houses

(ii) Directly from the companies,

(iii) Banks

(iv) Individual investors.

One of the most common and easiest ways of buying and selling stocks, mutual funds and bonds is through a brokerage house. These companies typically require an investor/trader to open an account with them and deposit funds as an act of good faith and for the security provided in the purchase of stocks. Brokerage houses are popular because they provide all support in research and selection of stocks. This allows investors to just focus on when and what to buy or sell. They look after things like completing the paperwork involved in transferring the ownership of stock and ensuring receipts of dividend payments. Some of the leading global brokerage houses providing various kinds of financial services to big institutional and retail investors are Citigroup, Merrill Lynch, Morgan Stanley, J.P.Morgan, Goldman Sachs, Lehman Brothers, UBS, etc. However, other avenues from where one can acquire financial securities or get exposure to financial market in today’s context are diminishing in importance; like, banks are opening their own brokerage houses or a separate division in the bank itself

 

 

1716_Process of Buying and Selling Securities.jpg

Posted Date: 9/11/2012 1:28:32 AM | Location : United States







Related Discussions:- Buying and selling securities, Assignment Help, Ask Question on Buying and selling securities, Get Answer, Expert's Help, Buying and selling securities Discussions

Write discussion on Buying and selling securities
Your posts are moderated
Related Questions
OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.

Financial Analysis Project: At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the

1. Let's look at the cash flow of the volatility (variance) spread swap: - ( σ 2 Nasdaq - σ 2 S & P 500 ) N 2 It is noticeable from this expression that investor

Convertible bonds are the debt instruments issued which can be converted after a pre-specified date for a pre-specified number of securities (generally equity stock). I

Define intermediation . The monetary system makes it possible for deficit and surplus economic units to come together exchanging funds for securities to their mutual benefit.

Which type of financing is appropriate to each firm

Will you please give the defination of "Future Value Of An Annuity"?

How many types of segments in the mutual fund industry? There are two segments into the mutual fund industry: long-term funds and short-term funds. In Long-term funds bond fund

Restrictions on Investments: A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment

Discuss risk from the perspective of the Capital Asset Pricing Model (CAPM). The Capital Asset Pricing Model or CAPM be able to be used to compute the appropriate required rate