--%>
Assignment Help - homework help

Types of secondary market trading structures

Compare and contrast a variety of types of secondary market trading structures.

E

Expert

Verified

There exist two basic types of secondary market trading structures:

a) Dealer and
b) Agency.

In dealer market, the dealer serves as the market maker for security, holding an inventory of the security.  Dealer buys at his bid price and sells at his asked price from this inventory.  All the public trades go through dealer.  In agency market, public trades go through the agent who matches it with other public trade.  Both dealer and agency markets may be continuous trade markets, but non-continuous markets tend corresponds to be only agency markets.

a) Over-the-counter trading,
b) Specialist markets, and
c) Automated markets, are types of continuous market trading systems.

Call markets and crowd trading are types of non-continuous trading market systems.  Continuous trading systems are enviable for actively traded issues, while call markets and crowd trading provide advantages for the smaller markets with many thinly traded issues since they mitigate the possibility of sparse order flow over the short time periods.

   Related Questions in Financial Accounting

  • Q : Claim depreciation When an asset is

    When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?

    		•
  • Q : Cause why relationships tend to come

    Identify and briefly explain the patterns in terms of how relationships tend to come apart (not together) or deteriorate. Use a real or hypothetical illustration to describe each of such phases.

    		•
  • Q : Asset-allocation funds Mutual funds

    Mutual funds that hold both bonds and stocks. Some asset-allocation funds follow specified allocation percentages and others take advantage of current condition. Those that take advantage of current condition is higher risk, because the fund manager tries to adjust the allocations to take advanta

    		•
  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

    		•
  • Q : Small talk Define small talk and

    Define small talk and discuss its role in developing the relationship.

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : Report on Business memo analyzing

    Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.

    		•
  • Q : Explain Return on Assets or ROA Return

    Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings

    		•
  • Q : Characteristics of Composite currency

    State the characteristics of the Composite currency bonds market instrument.

    		•
  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

    		•