ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Brokers are agents of investors who match buyers with sellers of securities; dealers link buyers and sellers by buying and selling securities at stated prices.

Detailed explanation-2: -Intermediaries who are agents of investors and match buyers with sellers of securities are called:-investment bankers.

Detailed explanation-3: -There are various intermediaries involved in a primary market, which includes merchant banks, brokers, debenture trustees, and portfolio managers. The secondary market or the stock market, where securities are traded after they are issued to the public in the primary market.

Detailed explanation-4: -Like a stockbroker, a Depository Participant (DP) is also an intermediary, mediating between the Depository and investor. A DP is an agency of Depository that lets you set up a DEMAT account. You need to transfer funds to your stockbroker to buy shares. The stockbroker credits funds to you when you sell shares.

Detailed explanation-5: -Intermediaries play an important role in the day to day market transactions and ensure that there are checks at all points of trade and there isn’t any misleading or misrepresentation of the company. SEBI regulates all the intermediaries and makes sure that none of them are involved in any kind of malpractices.