Stock Exchange

The main participants of the stock exchange.

Participants of the Stock Exchange 1

The main participants of the stock exchange. You already know that the activity in the stock market can only do its members. So you know, to participate in the exchange they need to comply with the established laws and stock exchange requirements. The presence of a special license - one of these requirements. Licenses issued by the Federal Service for Financial Markets (FSFM). She is licensed by the transactions on the stock exchanges. Dealers and brokers are the only participants who can trade on the stock exchange. Let's see how they differ and what are their functions?

Dealers - professional participants of the Stock Exchange, which include banks and investment firms who trade in securities. They do business on its behalf, for my money and do not engage in brokering. Transactions they enter into with customers, brokers, and each other. On the difference in rates of seller and buyer, as well as on the change rate of the securities and exchange, they get their profits.

Brokers - a professional stock market participants who are entitled to perform transactions with securities on behalf of a client and at his expense. It's the intermediaries engaged in dealings between buyers and sellers of currencies, securities and other financial assets. Do you know on what they earn? It's simple! Their income - is a fee for the mediation efforts, they receive while performing operations with securities. Depends on the amount of the transaction amount that the broker will receive as a reward. Currently, the bulk of the operations performed by large intermediary brokerage companies, which have a large network of branches and connections with banking institutions.

Job Broker is simple: the client gives him an order to buy or sell securities, and broker shall make this application on the market on which to find a counter proposal, after which they both are satisfied. In the broker's obligation is fair and accurate execution of client orders.

We found that participants in the stock exchange are the dealers and brokers. Now, we accentuate the main difference from the broker dealer: the dealer does business on its behalf and at his own expense, whereas a broker working on behalf of the client and is, in fact, a mediator. The dealer operates independently on the stock exchange and brokering deals - all invested in securities, metals and currency of the money belonged to him.

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