Role of securities firms in investment intermediaries, Financial Management

Assignment Help:

What is the role of securities firms in investment intermediaries?

Securities firms assist within the trading of existing securities into the secondary markets. The two major categories of securities firms are as follows:

a. Brokers: These are agents of investors who match buyers along with sellers of securities. Brokers earn a commission for their service;

b. Dealers: These are agents who link buyers and sellers from buying and selling securities. Dealers hold inventories of securities, and sell such securities for a little higher price than they paid for them. Therefore they earn the bid-ask spread, the dissimilarity between the best ask (lowest price charged for instant purchase of stock) and better bid (highest price received for an instant sale of a unit of stock).


Related Discussions:- Role of securities firms in investment intermediaries

Describe the balance of payments identity, Describe the balance of payments...

Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes. Answer:  The balance of payments recognize holds that t

What do you signify by risk analysis in capital budgeting, Q. What do you s...

Q. What do you signify by Risk Analysis in Capital Budgeting? Risk Analysis: - Risk in an investment demotes to the variability that is likely to observe between the estimated

Visible venture capital, It is the organized and established firms that con...

It is the organized and established firms that constitute the venture capital industry.

Credit card receivable-backed securities, For holders of CARDS,...

For holders of CARDS, the interest is paid monthly and the principal is not amortized. The principal payments made by credit card borrowers are

What do you mean by accrued expenses, Q. What do you mean by Accrued Expens...

Q. What do you mean by Accrued Expenses? Accrued expenses are the expenses which have been incurred but not yet due and hence not yet paid also. These simply represent a liabil

Rationale for mergers-product advantages, Product Advantages: A firm th...

Product Advantages: A firm that has developed a reputation for superior products in the domestic market may find acceptance from the foreign consumers as well. Hence, such firm

Factors of importance of returns in any investment, Factors of Importance o...

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

Determine the proportion of debt and equity, Q. Determine the proportion of...

Q. Determine the proportion of debt and equity? Financing Decision: - This function is related to increasing of finance from different sources. For this reason the financial ma

Methods of easing cash shortages, Q. Methods of easing cash shortages? ...

Q. Methods of easing cash shortages? There are several techniques which can potentially offset the effects of cash shortages. In the long-term nevertheless the adequacy of cash

How a firm determines the optimal level of current assets, Explain how a fi...

Explain how a firm determines the optimal level of current assets. The best possible level of working capital is determined by finding the amount that balances the need for liq

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd