Financial Trading Options You Must Try With the Landmark Financial Seoul Review
Continuing in the guides that belong to the path on the Stock Exchange, arrived with this guide to its third specific resource, it is time to better examine the role of financial intermediaries. These are those institutions and those professionals who buy and sell securities by order of their clients, tangentially in exchange for a commission on the value of the transaction that is requested of them.
The concept of financial intermediation (or stock brokerage) is fundamental to understanding the dynamics with which the financial markets work and how you too can have access to stock market listings. There are various types and in this guide we will take all of them into consideration. In the Landmark Financial Seoul Review you can find the best options now.
What financial brokers are for?
In previous guides we have explained that financial markets exist because there are two types of economic subjects: those in surplus (which have a greater liquidity than what they need to face expenses and investments) and those in deficit that instead have to finance themselves through third parties for to be able to carry on and expand their business. We have also said that the typical subjects in surplus are the families and that the typical subjects in deficit are the companies and the public administrations.
Financial intermediaries simply serve to bring in surplus subjects and those in deficit: for example, the bank collects private savings and lends them to other private individuals or companies in exchange for an interest on the loan disbursed. In the field of stock exchanges, securities brokerage companies collect orders from their clients and buy the securities they require.
There are growing forms of financial markets that do not require intermediaries. On the other hand, intermediation has a cost, so if you can it is better to avoid it.
On the other hand, however, the financial markets are far from simple and this makes it necessary to play the role of an institution that certifies aspects such as the solvency of a debtor or the validity of a certain fund: consulting, certification activity, the aggregation of collective savings and other types of transactions (such as the subscription of corporate bonds) are all very important activities for which it is necessary to have an intermediary.
A financial ecosystem without intermediaries, at least for the moment, is unthinkable.
Who are the financial intermediaries?
In addition to existing, the category of securities intermediaries is divided into different forms. In order to prevent the collapse of a single company from causing excessive damage to the real economy of an area, it is above all the law that provides for various types of intermediaries with specific skills.
The first category, which we will liquidate quickly enough because it has nothing to do with playing on the stock market, is that of credit intermediaries.