Thursday, May 7, 2009

financial service markets

Individuals and firms use financial service markets to purchase services that enhance the workings of debt and equity markets. for instance, commercial banks provide depositors not only with interest on deposits but also with a host of services such as check processing, safety deposit boxes, or ATM transactions. Banks use funds on deposit to participate in the debt market (by issuing loans). But Banks really do more than serve as an intermediary; they also provide " convenience," a valuable service that consumers are often willing to pay fees to enjoy. NO secondary market exists for financial services, since people do not sell "used" financial service to third parties.
Another financial service brokerage services. Brokers are intermediaries who compete for the right to help people buy or sell something of value. Real estate brokers help individuals buy or sell houses ; stockbrokers help individuals buy or sell assets such as stocks and bonds. As intermediaries, brokers receive a fee for performing the service of matching buyers and sellers of assets. Dealers differ from brokers in that dealers actually buy and sell securities from their portfolio, and do not just match up buyers and sellers.
finally, financial service markets provide individuals and firms with a means of insuring against various froms of loss, from loss of life to the loss of a valuable painting. These services too are performed for a fee; the proceeds are used not only to pay out insurance claims but also to purchase financial assets in debt and equity markets .
* For more information about debt markets you must visit this link :
* For more information about broker and dealers you must visit this links :

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