Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 13, Problem 12Q
To determine

How securities brokers/dealers, investments banks and organized exchanges differ from financial intermediaries?

Context Introduction:

A broker or a dealer is a person or a company that is in the business of buying and selling securities such as stocks, bonds, mutual funds, and certain other investment products on behalf of its customers acting as a broker and for its own account acting as a dealer, or both. An investment bank is an intermediary between security issuers and investors, does underwriting and acts as a broker/advisor to others for raising their funds and getting higher returns from investments. Organized exchange market is a market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.

A financial intermediary is an entity that acts as a middleman between two parties in a financial transaction, such as a commercial bank, investment banks, mutual funds and pension funds.

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