A broker-dealer is a licensed and regulated financial institution that acts as an intermediary between investors and the financial markets.. Its main function is to facilitate the purchase and sale of securities (such as stocks, bonds, options, etc.) in the stock markets.
Financial intermediaries are companies or entities that act as intermediaries between buyers and sellers of securities in financial markets, such as the stock exchange.
How is the financial system structured with stock intermediaries?
Stock intermediaries are key players in the financial system. These intermediaries play an important role in enabling the purchase and settlement of shares and securities in the markets.
In Mexico, for example, the financial system is composed of a group of entities in the stock market, which is regulated by the Ministry of Finance and Public Credit, through the National Banking and Securities Commission (Comisión Nacional Bancaria de Valores).
What are the types of stock intermediaries?
Financial stock intermediaries include:
- Brokerage houses
- Investment banks
- Asset managers
These intermediaries provide services such as execution of securities purchase and sale orders, investment advice and portfolio management for their clients.
How do stock intermediaries impact the economy?
Stock brokerage plays a crucial role, as it allows individuals and companies to invest in securities, such as stocks, bonds and other financial instruments, and in turn allows companies to obtain financing through the issuance of securities..
This in turn contributes to the economic growth and development of the country.
How does one become a stockbroker?
In order to become a stockbroker, it is necessary to obtain the authorization of the supervisory public bodies and to be registered in their registers, in compliance with strict solvency and internal organization requirements..
What is the role of a stockbroker?
The role of stock intermediaries is fundamental in the market because without them, the market would not be connected to investors..
Although, at the moment, blockchain technology is trying to replace that to save time and costs in the form of commissions, regulation is not very favorable, at least for the moment, to such a change.
