Preview

roles of a brokerage firm

Satisfactory Essays
Open Document
Open Document
736 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
roles of a brokerage firm
A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers.[1] A traditional, or "fuAn investment brokerage firm is a commercial enterprise, which functions like an helps its clients in multiple aspects. An investment brokerage firm acts as an intermediary between the buyer and the seller.
It functions through a number of investment brokers. An investment broker matches the purchasers of investment plans with the sellers. For carrying out this function, they charge a fee from the client. The fee is known as commission and it is represented as a percentage.

An investment brokerage firm offers a variety of brokerage services to its customers and it adopts different types of financial strategies, which help the investors to meet their financial goals. The investors are able to manage or minimize the risks associated with investment with the help of the valuable tips provided by the investment brokerage firms.

Investment brokerage firms also function as investment advisory firms or investment consultancy firms. They offer a variety of information to their clients, which include information regarding hot stocks and bonds, market analysis and research, online buying and selling of securities, investment tools and tips and many other types of information.
The services offered by investment brokerage firms can be categorized into the following types: ll service", brokerage firm usually undertakes more than simply carrying out a stock or bond trade
The business of brokers consists of searching out buyers when their customers wish to sell and locating sellers when their customers wish to buy so as to execute transactions as per customers’ instructions. Usually deals are arranged with other brokers representing their

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Chapter 5 HW

    • 372 Words
    • 3 Pages

    1. An awareness of stocks and bonds is crucial if one wants to invest intelligently.…

    • 372 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Finance Exam #1

    • 1820 Words
    • 8 Pages

    | lawyers, investment bankers, and others buy common stock in companies represented by their firms.…

    • 1820 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    Sample Exam

    • 1778 Words
    • 8 Pages

    If an individual investor buys or sells a currently owned stock through a broker, this is a primary market transaction. a. True b. False One of the functions of NYSE specialists is to facilitate trading by keeping an inventory of shares of the stocks in which they specialize, buying when investors want to sell and selling when they want to buy. They change the bid and ask prices of the securities so as to keep supply and demand in balance. a. b. True False…

    • 1778 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Sample Question of Fin110

    • 1206 Words
    • 5 Pages

    An interconnected network of brokers and exchanges licensed by the government to assist investors in trading securities…

    • 1206 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Secondary Market- When investors purchase and sell securities through a brokerage report, the deal occur on what is recognized as the secondary market. While the secondary market is not a place, it consists of all the interactions, trading rooms, and electronic, set of contacts where these business take place…

    • 1253 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Insurance intermediaries enable the placement and purchase of insurance and deliver services to insurance companies and consumers that supplement the insurance placement process. Traditionally, insurance intermediaries have been viewed as either insurance agents or brokers. The difference between agents and brokers relates directly to the way they operate in the marketplace.…

    • 1730 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Nyse Vs Nasdaq Essay

    • 584 Words
    • 3 Pages

    When we discuss the stock market we discover that it is an organization where equities are exchanged between buyers and sellers and the first thing that should come to our mind is either the New York Stock Exchange (NYSE) or National Association of Securities Dealers (NASDAQ). They are two exchanges who account for the trading of a major portion of equities in…

    • 584 Words
    • 3 Pages
    Good Essays
  • Better Essays

    “A Transaction Brokerage provides third-party real estate services to buyers and sellers” (Magloff). As clearly stated by Magloff, Real Estate Transaction Brokers are hired to assist all parties during a transaction of either buying or selling property. Real Estate Agents alone can only help so much, but Transaction Brokers are designed to help on a more personal level. Transaction Brokers are fair and can help more than a Real Estate Agent alone. It is important to understand the roles of a Transaction Broker so they can be clearly distinguished from a Real Estate Agent.…

    • 1143 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Employ Investment Bankers

    • 1265 Words
    • 6 Pages

    The primary market functions of investment bankers originate, or identify through the growth companies that can benefit from stock offers. Here, the investment banker markets his company as the best to help the company raise capital. These bankers can subscribe or risk a new offer using their capital to buy the securities of the issuer and then sell the securities to investors. For small and high risk issuers, they can help in a better effort offer by selling securities on a fee-for-equity basis.…

    • 1265 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    A.) Online brokerage firms include but are not limited to TD Ameritrade, E-Trade, Scot trade, and Fidelity Brokerage Services.…

    • 850 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The Dot Com Crash

    • 725 Words
    • 3 Pages

    Broadly, the institutions and intermediaries’ primary role involves channeling investors’ savings and funds to new companies that require capital to finance and grow their businesses. Because there is an information gap between investors and companies, investors rely on intermediaries to act as the experts on these investments in which intermediaries provide advice and recommendations.…

    • 725 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Buy-side Analysts/Portfolio Managers – These are institutions that actually buy or sell public stocks. The analysts research the companies and provide recommendations to the portfolio managers. Compensation for the analysts is based on how good are their recommendations. Portfolio managers act on behalf of investors and will buy the actual stocks based on the analysts’ recommendations and their own judgment. Their compensation is determined by the performance of their portfolio compared to the benchmark return.…

    • 805 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Federal Reserve Quiz

    • 844 Words
    • 4 Pages

    5 Intermediaries who link buyers and sellers by buying and selling securities a stated prices are called dealers.…

    • 844 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Raymond James Case Study

    • 369 Words
    • 2 Pages

    A broker/dealer is an intermediary in which investors purchase financial assets such as stocks, bonds, and mutual funds, as well as services such as financial planning, retirement, etc. Different types included “wirehouses,” which were the biggest firms that did business on a national, and often global, basis. There were also independent brokers who weren’t members of the NYSE. Lastly there were “regional” broker/dealers who had the same product scope as wirehouses but were based solely outside of New York.…

    • 369 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Public Response to Ipo in Nepal

    • 26864 Words
    • 108 Pages

    People or the institutions working as the intermediary between securities issuing companies and the investors on those securities are known as investment bankers or underwriters. Company offering shares contracts…

    • 26864 Words
    • 108 Pages
    Powerful Essays

Related Topics