What is the role of a broker in security transactions, Financial Management

What is the role of a broker in security transactions? How are brokers compensated?

Brokers manage orders to sell or buy securities. Brokers are agents who deal on behalf of an investor. While investors call with an order, brokers do work on their behalf to find someone to take the other side of the anticipated trade. If investors desire to buy the brokers find sellers. If investors want to sell then brokers find buyers. Brokers are remunerated for their services when the person whom they represent, the investor pays them a commission on the purchase or sale of securities.




Posted Date: 6/15/2013 6:16:51 AM | Location : United States

Related Discussions:- What is the role of a broker in security transactions, Assignment Help, Ask Question on What is the role of a broker in security transactions, Get Answer, Expert's Help, What is the role of a broker in security transactions Discussions

Write discussion on What is the role of a broker in security transactions
Your posts are moderated
Related Questions
1.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? 2. Suggestion regarding C

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for

Residual Income This is used for external reporting purposes. This term refers to the net income which is available for distribution to the firm's common stock holders. In mana

REPORT To: The Directors of Leaminger plc From: A business advisor Date: December 2002 Subject: Acquiring the turbine machine Introduction In financial

The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer:  The competitive effect: Exchange rate modifications may in

Q. Scope of the content of the finance function? 1) Estimating of the finance requirement: the first task of a finance manager is to estimate and short terms and long terms fin

Statement of Cash Flows A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are inve

RISK RETURN RELATIONSHIP A business operates in a market environment, which is not within its control. It is exposed to several dangers from the internal with external sources

Evaluate the firm’s financial standing for the past 5 years: • Undertake a financial and strategic analysis of its performance: o Use the Assignment Questions for guidance ON