Role Of Commercial Banks In Economic Development. What Is Commercial Bank? A commercial bank is something with which every one of us is well known. However different bankers and economists have defined it in a different way: Role Of Commercial Banks In Economic Development According to Kent, “An organization whose principal operations are concerned with the accumulation of the … [Read more...] about Role Of Commercial Banks In Economic Development
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Liquidity in the Secondary Market
Liquidity in the Secondary Market: Liquidity is the ability or power of an asset to be converted into cash or near cash at the time needed without loss. A liquid asset is a readily marketable asset with a relatively stable price that is reversible. Perfectly marketable assets are called perfectly liquid assets. Whenever sold they suffer no price decline. Liquidity in the … [Read more...] about Liquidity in the Secondary Market
The Structure of the Secondary Market
The Structure of the Secondary Market. When securities are traded between investors, issuers no longer receive any cash proceeds. Investors usually initiate securities purchases in the secondary markets by calling a security brokerage house. After an account has been opened, a broker relays the client’s order to a dealer making a market in the securities the investors want. … [Read more...] about The Structure of the Secondary Market
Meaning and Types of Investment Companies
Meaning and Types of Investment Companies. Investment companies are financial institutions obtaining money from individual investors and use it to purchase financial assets like stocks, bonds, etc. from the financial markets. In turn, investors receive certain rights regarding the financial assets that the investment company has bought and the earnings that the company may … [Read more...] about Meaning and Types of Investment Companies
Difference Between Primary Market and Secondary Market
Difference Between Primary Market and Secondary Market: The most popular another term of "Primary market" is "Market in art valuation". The primary market is a significant part of the capital market. It usually deals with issuing of new securities. Primary markets make long term instruments through which corporate entities raise funds from the capital market. The secondary … [Read more...] about Difference Between Primary Market and Secondary Market
Trading Systems in Stock Exchanges or Trading Arrangement
Trading Systems in Stock Exchanges or Trading Arrangement. Investors give orders to the broker or dealer to execute their transactions in the securities markets with a view to managing their portfolios. When an investor places an order with a broker/dealer, there are a number of arrangements from which he can choose. These arrangements include the type of orders placed, the … [Read more...] about Trading Systems in Stock Exchanges or Trading Arrangement
Types of Brokers and Dealers – A Broker in The Securities Markets
Types of Brokers. The trading activities done by the investors are executed by a security firm acting either a broker or a dealer. A firm acting in a brokerage capacity serves as an agent for investors by finding anther investor to take the other side of the transaction. For doing this job, the broker is compensated by a commission. A broker in the securities markets is an … [Read more...] about Types of Brokers and Dealers – A Broker in The Securities Markets
Participants in the Securities Markets
Participants in the Securities Markets: People of different categories do engage in share trading on DSE. Share ownership in DSE has increased significantly during the last couple of years. The motivation of all the participants is presumed to be the same: to earn a return at least commensurate with the level of risk assumed. Participants in the Securities Markets In the … [Read more...] about Participants in the Securities Markets
Basic Functions of the Secondary Market
Basic functions of the secondary market. When securities are traded between investors, issuers no longer receive any cash proceeds. Investors usually initiate securities purchases in the secondary markets by calling a security brokerage house. After an account has been opened, a broker relays the client’s order to a dealer making a market in the securities the investors want. … [Read more...] about Basic Functions of the Secondary Market
Areas of Legal Coverage of SEC
Areas of Legal Coverage of SEC. The Securities and Exchange Commission was established under the Securities and Exchange Commission Act, 1993 to protect the interest of the investors in securities markets. Areas of Legal Coverage of SEC Under the Act, Rules, and Regulation thereunder, the Commission is supposed to perform the following functions: i) to ensure the issuance of … [Read more...] about Areas of Legal Coverage of SEC