--%>
Assignment Help - homework help

Types of secondary market trading structures

Compare and contrast a variety of types of secondary market trading structures.

E

Expert

Verified

There exist two basic types of secondary market trading structures:

a) Dealer and
b) Agency.

In dealer market, the dealer serves as the market maker for security, holding an inventory of the security.  Dealer buys at his bid price and sells at his asked price from this inventory.  All the public trades go through dealer.  In agency market, public trades go through the agent who matches it with other public trade.  Both dealer and agency markets may be continuous trade markets, but non-continuous markets tend corresponds to be only agency markets.

a) Over-the-counter trading,
b) Specialist markets, and
c) Automated markets, are types of continuous market trading systems.

Call markets and crowd trading are types of non-continuous trading market systems.  Continuous trading systems are enviable for actively traded issues, while call markets and crowd trading provide advantages for the smaller markets with many thinly traded issues since they mitigate the possibility of sparse order flow over the short time periods.

   Related Questions in Financial Accounting

  • Q : World beta concept of a security

    Explain the world beta concept of a security.

    		•
  • Q : Define the term Assets Define the term

    Define the term Assets in Accounting?

    		•
  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

    		•
  • Q : Foreign subsidiary- financial structure

    State some of the conditions under which the foreign subsidiary’s financial structure become relevant?

    		•
  • Q : Write a Matlab function Fourbar Write a

    Write a Matlab function Fourbar (r1,r2,r3,r4,theta,speed) that animates three cycles of a fourbar linkage having link lengths r1, r2, r3, r4. The function first checks to ensure the mechanism isGrashof (including the change-point c

    		•
  • Q : Discrimination to women and minority

    Most of the organizations have established policies to remedy discrimination whenever hiring women and minorities. Discuss whether you feel that affirmative action programs, reverse discrimination, and criteria of comparable worth are suitable forms of remedy. You mus

    		•
  • Q : Implement a user-defined matlab

    Your solution to the problem should be housed within a while loop, which allows the grader to test your solution repeatedly without having to re-execute the script, as shown in class. You should first display the purpose of the program, and then you should prompt the

    		•
  • Q : Trends in international business

    Explain three important trends which have prevailed in the international business during last two decades.

    		•
  • Q : Asset Owned by an entity, something

      Owned by an entity, something that provides benefits and whose cost can be measured. The measure of the value of assets in dollar appears on the

    		•
  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

    		•