Describe the role of a broker in security transactions

Describe the role of a broker within security transactions? How are brokers compensated?
Brokers handle orders to purchase or sell securities. Brokers are agents who work in support of an investor. While investors call with an order, brokers work on their behalf to search someone to take the other side of the proposed trade. If investors desire to buy, brokers find sellers. If investors desire to sell, brokers search buyers. Brokers are compensated for their services while the person whom they represent, the investor, pays them a commission onto the sale or purchase of securities.

View Complete Question

Related Questions in Finance Basics

Q : Translate enterprise value in net

Describe the adjustments essential to translate enterprise value to the net present value of common equity.To get the value of the company's common stock, add up the value of the firm's present assets to the enterprise value (this generates the

Q : What is the efficiency factor Normal 0

Normal 0 false false

Q : Explain Expenditures by Category

Expenditures by Category: A budget display, for each and every department, which reflects actual precedent year, estimated present year, and proposed budget year expenses presented by the character of expenditure (example, State Operations and/or Loca

Q : Two Questions Question 1 An all equity

Question 1 An all equity firm has a required return on its equity of 15%, has 10 million shares outstanding, and pays no taxes. The shares are currently trading at $6.00 each. The firm is planning to borrow $9 million at 5% interest rate and use the borrowed funds to buyback a portion of its equi

Q : Why coefficient of variation is better

Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

Q : Fin 335 International finance 1. The

1. The exchange rate is 1.22 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1,500 Swiss francs? [$1,229.51] 2. You are planning an extended trip to Hong Kong. You have located some housing

Q : Determine sizes of the MPC- the MPS and

Normal 0 false false

Q : How do mergers influence communities

How do mergers influence communities?While a locally controlled bank is merged into a bank headquartered elsewhere (an out-of-market merger), some of the apprehension regarding the institution's future commitment to the local community is bound

Q : What is Shared Revenue Shared Revenue:

Shared Revenue: It is a state-imposed tax, like the gasoline tax, that is shared with the local governments in proportion, or significantly in proportion, to the amount of tax collected or generated in each local unit. The tax might be collected eithe

Q : What is Budget Change Proposal Budget

Budget Change Proposal (BCP): It is a proposal to modify the level of service or funding sources for activities sanctioned by the Legislature, suggest new program activities not presently authorized, or to remove existing programs.

Discover Q & A

Leading Solution Library

Avail More Than 1449742 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1938258
Asked

3,689

Active Tutors

1449742

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment