ADMS 3541 Lecture Notes - Lecture 20: Market Maker, Capital Formation, Block Chain

• School: York University
• Department: Administrative Studies
• Course: ADMS 3541
• Professor: Alan Go

Document Summary

Investment bankers represent companies in various capacities, such as private companies that want to go public via an ipo or companies that are involved in pending mergers and acquisitions. They take care of the listing process in compliance with the regulatory requirements of the stock market. Market maker: a market maker is a broker-dealer who facilitates the trading of shares by posting bid and ask prices along with maintaining an inventory of shares. He ensures sufficient liquidity in the market for a particular (set of) share(s), and profits from the difference between the bid and the ask price he quotes. Stock exchanges operate as for-profit institutes and charge a fee for their services. The primary source of income for these stock exchanges are the revenues from the transaction fees that are charged for each trade carried out on its platform. Additionally, exchanges earn revenue from the listing fee charged to companies during the ipo process and other follow-on offerings.