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FIN Unit 1 IP 2 - There are still full service stock...

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1 Unit 1 Individual Project 2 Lorraine Huff FIN410-1003A-07 American InterContinental University June 12, 2010
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2 “The role of financial intermediation is so crucial in every economy. It affects the rate of investment, the Gross National Product, the level employment, level of income and also further savings. As a result of the crucial position of financial intermediaries, the monetary policies of the government are usually implemented by them.” Financial intermediaries are thought of as a sort of middleman between investors and firms. They are a medium of exchange. The functions of financial intermediaries are portfolio management, mobilization of savings, risk diversification, granting of loans and advances, transmutation, payments mechanism, and security trading. Registered stock brokers are the only people allowed to trade on the floors of the major stock exchanges, so the main function of the broker is to allow the investors access to the stock market.
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Unformatted text preview: There are still full service stock brokers available, but electronic trading, or e-trading, has changed the way that many investors use the stock market. Their training and education, along with their expertise in the field, allow brokers to be in a position to give investors reliable advice or to act on the behalf of the investors themselves, at their own discretion. 3 References Gitman, L. J. (2009). Principles of Managerial Finance Twelfth Edition. Boston, MA: Pearson Education, Inc. Nicholson, J. (2001). What is the Role of a Broker in the Financial Market? Retrieved June 12, 2010, from ehow.com: http://www.ehow.com/about_4608704_what-role-broker-financial-market.html xomba.com. (2009, June 14). Financial Systems In U.S. Economy . Retrieved June 12, 2010, from xomba.com: http://www.xomba.com/financial_systems_u_s_economy...
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