Brokerage firms primarily connect buyers and sellers of securities. They facilitate transactions in financial markets, enabling investors to buy and sell stocks, bonds, and other financial instruments. While they do not provide direct loans to savers or insure borrowers against market crashes, they play a crucial role in channeling funds from investors (savers) to borrowers (companies or governments issuing securities) by facilitating these purchases.
In what way do brokerage firms channel saved funds to borrowers?(1 point)
Responses
Brokerage firms provide short-term loans to savers.
Brokerage firms provide short-term loans to savers. - incorrect
Brokerage firms pool investment funds and make large securities purchases.
Brokerage firms pool investment funds and make large securities purchases. - no response given
Brokerage firms insure borrowers against stock market crashes.
Brokerage firms insure borrowers against stock market crashes. - no response given
Brokerage firms connect buyers and sellers of securities.
1 answer
1 answer