While a broker stands as an intermediary or a mediator between a buyer and a seller, it is an agent that is involved in all transactions. This leads to the question: what is the brokerage, and who is a broker? A brokerage is an organization, a business platform, or a firm that gives investors, buyers or sellers, access to the financial market for trading. There is a need to trade through an exchange medium known as a brokerage, where the investors can invest in the global financial market with reasonable conditions and tools to be used provided by the broker. ![]() The functions of the financial markets are to provide an easy way of transaction for the investors, provide capital for the investors, help the economy of a nation, and provide jobs. There are many financial markets in which an investor or a buyer can decide to invest: the stock market, bond market, commodities market, and derivatives market. In this 21st century, the advent of the Internet makes the financial market accessible to all (humans) in the form of digitalized currency. It can be anything with a certain amount of value that can be used for an exchange.Īs the world changes from analog to digital, there are also dynamic changes in currency from forms such as metallic and paper to digitalized forms. The definition of money prescribes that money doesn’t have a particular value i.e. Money moves from several stages: commodity money, metallic money, plastic money, credit money up to paper money. No one knows for sure when humans started using money, but history believes there was a form of exchange between men from the beginning. It was said that the first known form of currency emerged nearly 5,000 years ago. ![]() This process was known as trade by barter. Humans survived by trading what they have at the rate of a certain value with another. Trading has been part of human history since when man was created.
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