Question

In: Finance

In the context of acquiring financial assets, which of the following is a result of competition...

In the context of acquiring financial assets, which of the following is a result of competition among brokerage firms?

options:

Many full-service firms have lowered their commissions, while many discount brokers have begun offering investment advice and other services.

Most full-service firms do not charge fees for the services they provide, while most discount brokerage firms charge commissions based on the dollar value of the orders their clients place.

The commissions and fees charged by discount brokers are usually significantly higher, while full-service brokers charge flat fees of a few dollars per trade for simple transactions.

Discount brokers provide a wide range of services—such as research to identify good investment opportunities, financial planning, and tax advice, while full-service brokers restrict themselves to buying and selling securities for their clients.

Solutions

Expert Solution

Due to increase in competition among brokerage firms i think the following option will be reulted.

Many full-service firms have lowered their commisions, while many discount brokers have begun offering investment advice and other services.

Because full-service brokerage charges more than discount brokers and the discount brokers offer less services compared to their competitors.


Related Solutions

Which of the following is most likely to result in price-based competition in an industry? A....
Which of the following is most likely to result in price-based competition in an industry? A. Fixed costs in the industry are low B. Companies in the industry offer products with unique features C. Most customers are more concerned about quality than price D. Customers face substantial costs in changing from one supplier to another E. The industry’s products become obsolete rapidly if not sold
(a) Which market structure, Perfect Competition, Monopoly, or Monopolistic competition, will result in the greatest degree...
(a) Which market structure, Perfect Competition, Monopoly, or Monopolistic competition, will result in the greatest degree of choice between alternate products for consumers? Please give an explanation. (b) In which market structure are firms most likely to advertise? Please explain.
Which of the following are real assets, and which are financial? a. A share of stock....
Which of the following are real assets, and which are financial? a. A share of stock. b. A personal IOU. c. A trademark. d. A factory. e. Undeveloped land. f. The balance in the firm’s checking account. g. An experienced and hardworking sales force. h. A corporate bond. Which of the following statements always apply to corporations? a. Unlimited liability. b. Limited life. c. Ownership can be transferred without affecting operations. d. Managers can be fired with no effect on...
a) Which of the following are real assets, and which are financial? A Share of Stock...
a) Which of the following are real assets, and which are financial? A Share of Stock A Personal IOU A Trademark A Factory Undeveloped Land The Balance in the Firm’s Checking Account An Experience and Hard Working Sales Force A Corporate Bond               b) Identify and briefly describe the financial functions in the financial system.               c) Identify the financial system’s major components and their roles.               d) Describe the MI definition of the money supply and indicate the relative...
Determine which of the following polymers are the result of polymerization, and which are the result...
Determine which of the following polymers are the result of polymerization, and which are the result of post-polymerization processing. Explain! 1. low density polyethylene 2. high density polyethylene 3. phenol-formaldehyde 4. heavily cross-linked polyisoprene (glass trans. temp: 50C) 5. lightly cross-linked polyisoprene (glass trans. temp: -60C)
Part 1: Acquiring Assets XYZ Corporation purchased the following assets during the year. Assist XYZ Corporation...
Part 1: Acquiring Assets XYZ Corporation purchased the following assets during the year. Assist XYZ Corporation by determining the cost of each asset. Land Costs: Purchase price                                                              $119,520 Surveying fees                                                                   3,550 Title insurance                                                                   1,270 Excavating fees necessary to pass safety inspection           10,250 Building Costs: Purchase price                                                              $425,000 Title fees                                                                             7,270 Legal fees                                                                               520 Realty fees                                                                         14,560 Interest charges from the first year of the mortgage            12,400 Renovation and repair to make the...
Which of the following assets would most likely be listed last on a statement of financial...
Which of the following assets would most likely be listed last on a statement of financial position? Select one: a. Land. b. Cash. c. Accounts receivable. d. Equipment. 2. Which of the following will not cause a change in the owners' equity of a business? Select one: a. Purchase of land with cash. b. Withdrawal of cash by the owner. c. Sale of land at a profit. d. Losses from unprofitable operations. 3. Decreases in owners' equity are caused by:...
Acquiring assets by taking on debt is one way you can accumulate assets. And many of...
Acquiring assets by taking on debt is one way you can accumulate assets. And many of these loans will fall into the category of long-term liabilities. But, in order to present them on the balance sheet correctly, the following must be known about the loan. Complete each statement as it applies to loans. Regardless of the type of loan, only the ______________ is shown on the balance sheet. Options for blank: Principal borrowed/ latest outstanding loan balance/ loan balance plus...
Discuss about the Price strategy of the company in context of imperfect competition.
Discuss about the Price strategy of the company in context of imperfect competition.
In the context of critical thinking, which of the following is true of the fallacy of...
In the context of critical thinking, which of the following is true of the fallacy of retrospective determinism? Question 5 options: It is the tendency to overgeneralize, to use one, two, or three cases to support an entire argument. It attributes the cause of a particular problem to society and denies individual responsibility. It is an idea, a way of thinking about a particular collectivity of people. It asserts that what happened historically had to happen, and it had to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT