Question

In: Finance

Buyers and sellers of securities for themselves in the money markets are called:

Buyers and sellers of securities for themselves in the money markets are called:

Solutions

Expert Solution

DEALERS.

Dealers are financial intermediaries who buys or sells securities for their own accounts. They help their clients filling their orders by trading with them. Brokers on the other hand, trade only on behalf of their clients and do not buy or sell for their own account. Dealers help their clients with the liquidity by purchasing instruments for their own account that their clients want to sell , and sell instruments that they own to ctheir clients if they want to. Liquidity is an important aspect of robust financial markets.

Dealers play a role of both brokers as well as an investor ehich makes the market more liquid.


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