Brokers and dealers help make securities market liquid. What role does each play in making markets...

Brokers and dealers help make securities market liquid. What role does each play in making markets more liquid?

Expert Solution

The broker acts as intermediaries to the buyer and sellers which brings both the parties (seller and buyer of securities) together. For their service, they also charge brokerage fees. By bringing together both parties, the chances of buying and selling the securities increase in the market which further leads to increase liquidity in the market.

Dealers are the individuals or firms which trade securities on their account, unlike brokers who trade on behalf of their clients. Dealers bid on securities and buying and selling of the securities are done from their account as part of their regular business which provides liquidity to the security market as securities can be traded according to demand and supply in the market.

Rahul Sunny answered 2 years ago

What role does intuition play in decision making? What role does quantitative data play in decision...

What role does intuition play in decision making? What role does quantitative data play in decision making? Identify a decision situation in which you used both intuition and data for your analysis of the situation

Define Bioinformatics. What role does it play in healthcare IT? How does it help us in...

Define Bioinformatics. What role does it play in healthcare IT? How does it help us in identifying what is the relationship between understanding the genetic basis of a disease and treating the disease? Discuss using example of Human Genome Project.

What role does the consideration set play in consumer decision making? What is meant by each...

What role does the consideration set play in consumer decision making? What is meant by each of the following: universal set, awareness set, consideration set, inert set, and inept set?

What is a lichen? What role does each of the organisms that make up a lichen play? What role does fungi play in the carbon, nitrogen and phosphorus cycles?

42. What is a lichen? What role does each of the organisms that make up a lichen play? 43. What role does fungi play in the carbon, nitrogen and phosphorus cycles?

What role does innovation play in making businesses successful?

What role does evaluation play in the policy making process?

What role does intuition play in effective decision making?

What role does the Krebs cycle play in the making of ATP?

What role does the EPA site on the Ribosome play during translation? Explain with help of...

What role does the EPA site on the Ribosome play during translation? Explain with help of a diagram. Also explain how codons, tRNA & anticodons play a role during translation (2 points) What is an Inducible operon? Give an example and explain the steps in the functioning of one such operon. You may use a diagram to explain your answer (2 points)

List four variables that help to define a menu. What role does a menu play in...

List four variables that help to define a menu. What role does a menu play in relation to a business’s brand? List the two primary tools that help to define a market. What type of information does each one provides? If a chef wants to create a menu that exceeds his staff’s ability, why can’t he just hire new staff? How does a kitchen’s space and work flow impact a menu? Who are the typical stakeholders who contribute to the...

Question