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

Percentage of sales method - financial forecasting, Percentage of Sales Met...

Percentage of Sales Method - Financial Forecasting This method includes expressing various balance sheet items such are directly concerned to sales as a percentage of sales.

Example of baumol's model, Example of Baumol's Model ABC Ltd. creates ...

Example of Baumol's Model ABC Ltd. creates cash payments of Shs.10, 000 per week.  The interest rate at marketable securities is 12 percent and every moment the company sells

Agency theory, Agency Theory An agency relationship arises whether on...

Agency Theory An agency relationship arises whether one or more parties identified the principal contracts or hires another identified an agent to perform on his behalf some

Origination fees, jack needs to borrow $1000 for the next year. Bank south ...

jack needs to borrow $1000 for the next year. Bank south will give him the loan at 9%. Suncoast will give him the loan at 7% with a $50 loan orgination fee. First national will giv

Clientele effect theory, Clientele Effect Theory Advance via Richardso...

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

Investment analysis, Investment Analysis Any type of company will inve...

Investment Analysis Any type of company will invest finance for the sake of deriving a return that is useful for four main purposes as: 1. To reward the owners or shareholder

Strike price and putable bond, Analysis of the bond issue (a) Show that...

Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co

Marginal Cost of Finance, Marginal cost of finance This is cost of new...

Marginal cost of finance This is cost of new finances or additional cost a company has to pay to raise and use additional finance is given by: (Total cost of marginal finan

Differences between equity finance and preference, Differences between Equi...

Differences between Equity Finance and Preference Dissimilarity between Equity Finance and Preference are as follows:   Ordinary share capital

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