--%>
Assignment Help - homework help

Several types of secondary market trading structures

Compare & contrast the several types of secondary market trading structures.
There are two fundamental types of secondary market trading structures: dealer & agency. In a dealer market, the dealer serves as market maker for the security, holding an inventory of the security. The dealer buys at his bid price and sells at his asked price from this inventory. All public trades go through the dealer. In an agency market, public trades go through the agent who matches it with another public trade. Dealer and agency both markets can be continuous trade markets, however non-continuous markets tend to be only agency markets. Over-the-counter trading, specialist markets, and automated markets are sort of continuous market trading systems. Call markets & crowd trading are each kind of non-continuous trading market systems. Continuous trading systems are wanted for actively traded issues, while call markets and crowd trading offer advantages for smaller markets with several thinly traded issues since they mitigate the possibility of sparse order flow over short time periods.

   Related Questions in Financial Management

  • Q : When is an exploitable opportunity seen

    When is an exploitable opportunity usually seen for excess returns?

    		•
  • Q : Question on unbiased predictor of

    The March 2000 Mexican peso futures contract contains a price of $0.11695. You believe the spot price will be $0.09550 in March. What speculative location would you enter into to try to profit from your beliefs? Compute your anticipated profits supposing yo

    		•
  • Q : Calculate rate of return on investment

    In May 1995, Japan Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds while the exchange rate was 80 yen per dollar. The company liquidated the investment one year afterwards for $10,650,000. The exchange rate turned out 110 yen per dollar

    		•
  • Q : Define working capital Define working

    Define working capital. What is the main advantage to a corporation by investing some of its funds in working capital?

    		•
  • Q : Decision theory according to decision

    according to decision theory approach ,which is the core of management

    		•
  • Q : Effect of free international trade in

    How is a country's economic well-being increased through free international trade in goods & services?According to David Ricardo, along with free international trade, this is mutually beneficial for two countries to each specialize in the pr

    		•
  • Q : Illustrates an example of GARCH

    Illustrates an example of GARCH.

    		•
  • Q : What is exact way of traders to use the

    What is the exact way of traders to use the gamma to calculate?

    		•
  • Q : What are random factors for

    What are random factors for risk-neutral drifts?

    		•
  • Q : Question on interest pay through

    Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank.  If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo

    		•