There are 3 types of financial intermediaries: investment bankers, brokers, and dealer. Investment banking firms help businesses and governments sell their securities to the public. They purchase securities from the issuing company and then resell them to the public (called underwriting) or they try to sell securities for a desired price, without guarantees (called best efforts basis). (Gallagher & Andrew, 2003) Broker dealers are financial intermediaries that provide a wide range of financial and investment services to investors including the execution of trades, advice on which securities to buy or sell, as well as on financial planning. (ECCB, 2006) A broker dealer can help one make future investment decisions with greater confidence. A broker is only authorized to buy and sell ... Showed first 120 words of 421 Size (words) ...

... Continuing with another 115 out of 421 Size (words) ...accordance with the level of services provided, the value of the client's assets under management, and the fee structure of each broker dealer. However, regulations have capped commissions at 5% of the value of the total investment that investors would have authorized the broker dealer to trade on their behalf. (ECCB, 2006) A good broker dealer will seek out good returns for your investments.

Since the birth of on-line investing, online trading has exploded over the past years as investors are becoming more self-sufficient and comfortable using their computers for investing. The customer is able to access their account information and place trades 24 hours a day. When shopping around for an online discount broker, ...Essay still continues 100 more words...