AFM121 Lecture Notes - Lecture 2: Life Insurance, Imperial Bank Of Canada, Demutualization

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Steve Balaban

Document Summary

Intermediaries facilitate the exchange of capital between suppliers and users. Banks and trust companies accept deposits from their customers (capital suppliers) and lend to capital users. Investment dealers serve a number of functions in the capital transformation process, sometimes as agents or principals. The larger securities firms that are national in scope account for the majority of total industry revenue. Ma(cid:374)(cid:455) of the s(cid:373)all fi(cid:396)(cid:373)s a(cid:396)e (cid:396)efe(cid:396)(cid:396)ed to as (cid:862)i(cid:374)(cid:448)est(cid:373)e(cid:374)t (cid:271)outi(cid:395)ue(cid:863); the(cid:455) te(cid:374)d to fo(cid:272)us o(cid:374) one particular segment in a market. In addition to traditional full service brokers, there are many discount brokerage firms in. Canada that execute trade over the phone or internet. They provide lower fees, fewer services and are ideal for more knowledgeable investors. Competition in the securities market has become fierce as a result of the growth of electronic communications, globalization and computerized trading. An important role for investment dealers is to bring together those with surplus capital with entities that require investment capital.