The Financial World

Essay by DVSDUniversity, Bachelor'sB+, October 2007

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A financial intermediary is typically known as a bank and/or financial institutions. These intermediaries channel the savings of individuals, businesses and governments into loans and/or investments. (Gitman, 2006)These intermediaries provide financial services to its customers and clients. It first provides loans for individuals and businesses. By specializing in lending to people they can predict which of the applicants for loans will be able to repay the loan. Secondly, these institutions have the resources and ability to convert assets into usable money. Thirdly, these intermediaries facilitate individuals and businesses in the use of financial markets allowing them to start investing wisely with small amount of financial risk involved.

Before you begin to buy shares of stock you need to find a broker. They are there to help with the transaction "a middleman" between you and the stock market. They are first and foremost salesman. They may work for a brokerage house.

They are there to perform the stock transaction for you, for a commission, of course, that is how they get paid. Before a stockbroker sells to you they have to pass two licensing examinations, a Series 7 and Series 63 examinations. Once completed the brokers may now be able to advise you on transactions you may want to invest in. (, 2007)The financial world of investments has now and forever been changed. Investors can review their portfolios, buy and sell commodities with a click of a mouse. Investors now have taken a more hands-on participation in their investing and financial future.

Broker fees for online trading are in the range of $7 to $12 per trade, which is a great benefit for investors for they are lower than brokerage house fees. Online investors are now able to choose what stocks they want to buy or sell regardless of the advice...