What is the role of a broker in security transactions, Finance Basics

Assignment Help:

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

Ans: Brokers handle orders to sell or buy securities. Brokers are agents who work in place of an investor. While investors call with an order, brokers work on their behalf to find out someone to take the other side of the proposed trade. If investors wish to buy, brokers find sellers. If investors wish to sell, brokers find buyers. Brokers are compensated for their services while the person whom they denote, the investor, pays them a commission on the sale or purchase of securities.


Related Discussions:- What is the role of a broker in security transactions

Work, A bond that has $1000 face value and a contract interest rate of 11.4...

A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The

Bases of share valuation, Bases of Share Valuation Share valuation can...

Bases of Share Valuation Share valuation can be done on the basis of income and asset values. On the basis of income still a share will be entitled to two forms of income. For

Required barrels of water per day, In the present case, we need to take a d...

In the present case, we need to take a decision about implementing one of the available two options, based on various factors. The available two options are either to complete a se

Evaluate the riskiness of an investment , Compare the three investments bel...

Compare the three investments below in terms of their riskiness. What is the best way to evaluate the riskiness of an investment given the information you have on them?

Roe - return on equity, ROE - Return on Equity The average of the...

ROE - Return on Equity The average of the industry ROE was 21.38% for 2004, 24.99% for 2005, and 23.56% for 2006. The chart showed that after the acquisition of IBM PC di

THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t...

Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani

Financial analysis, Bell is considering two marketing options for the Canad...

Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012.   i. A  "soft" launch using prima

Factors affecting share prices, Factors Affecting Share Prices The ent...

Factors Affecting Share Prices The entire sorts of influences affect share prices. These influences involves as: 1. The current profit record of the company particularly th

Getting money, how i can get enough money with out doing any works ???????...

how i can get enough money with out doing any works ????????????

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