In its traditional role, why is a stock brokerage firm not considered a financial intermediary? Differentiate between the role of a brokerage firm and that of an intermediary.
Answer to relevant QuestionsIdentify some of the instructions that investors can give brokers when trading securities. Under what circumstances would a limit order be appropriate? Why would an investor ever use a good ’til canceled (GTC) order?How and why does an investor short sell a security?Assume that IBM stock is selling for $110 per share and that you short sell 200 shares of the stock.a. What would be your dollar return if the price of IBM stock drops to $95 per share?b. What would be your dollar return if ...Assume that the stock of Warner-Lambert Company, a pharmaceutical manufacturer, is currently selling for $75 per share. You have $7,500 of your own funds to invest. The brokerage firm that you use for your stock trades will ...Differentiate between the fundamental analysis and technical analysis approaches used for stock valuation and selection.
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