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
Explain the significance of the term additional funds needed . When the pro forma balance sheet is finished, total liabilities and total assets and equity will rarely match.

answers for the personal finance literacy 2nd edition workbook answers chapter 9(obtaining and protecting your credit)

Question 1: Explain clearly why "Public Policy Making constitutes a major part of the work of the Government. Question 2: Consider the role of interest groups in public

Explain the significant feature of the wealth maximisation The significant feature of the wealth maximisation criterion is that it considers is that it considers both the quali

how would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit?

Why is the replacement value of assets method not generally used to value complete businesses? The replacement value of assets method isn't often applied to entire business val

This assignment is an analysis of a U.S. publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages


At current interest rates and exchange rates, the US might have a $400 billion net financial (capital) account inflow from the rest of the world during 2010, and the

Q. What is Accumulated Depreciation? Accumulated Depreciation - Total DEPRECIATION pertaining to an ASSET or group of assetsfrom the time the assets were placed in services unt