Brokerage services

What tasks does the Investment intermediary solve by providing brokerage services to the Client?

An investment intermediary can carry out a wide range of operations that may require brokerage services. The main tasks for which this service may be required are as follows:

• Diversification of capital. Having free assets in the medium or long term, it is advisable not to postpone them in liquid form (for example, on deposit), but to buy bonds of promising enterprises or banks in order to generate additional income;
• Expansion of influence in the industry, consolidation of business. If the company is large, the purchase of shares of other enterprises can be a tool to build up influence in the industry or gain access to the necessary resources that they possess .;
• Speculative stock trading. Additional income can be obtained by selling assets that were previously purchased cheaper;
• Attracting loans through a REPO instrument, that is, obtaining a loan secured by securities.

Summarizing the above objectives, we can conclude: brokerage services may be required by the Investor for short-term and long-term goals. In the short term, speculative trading in stocks, bonds and derivative securities is used. In the long run, companies buy assets that they expect in the future as strategic ones.

As a result, trading on the stock market allows you to earn income significantly higher than bank deposit rates. Financial instruments for making profit in the stock market are securities - stocks, bonds and derivatives market instruments (derivative securities in the form of futures and options). Investor income is formed as a result of a game to increase or decrease the rate of securities.