1.

State the meaning of term Brokerage Services. Why bank act as dealers for such services? List the instruments in which bank deals.

Answer»

This service of buying / selling financial products is known as Brokerage services.

Investment Bank Dealers know their customers’ needs and can help meet the two customers. Bank Dealers buy / sell financial products on behalf of their customers. Bank earns brokerage income and profit from buying / selling of securities.

Bank Dealers provide brokerage services in case of:

• Equity shares 

• Debt Instruments 

• Currencies 

• Derivatives instruments



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