The Brokerage Firm Can Also Choose to Execute the Trade

question 29

True/False

The brokerage firm can also choose to execute the trade on an agency basis. In this case, the dealer would commit its own capital to buy or sell the portfolio and complete the investor's transaction immediately.

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Definitions:

Ontario Securities Commission

A regulatory body in Ontario, Canada, responsible for overseeing the capital markets within the province.

Bond Rating Services

Companies that evaluate the creditworthiness of both debt securities and their issuers, providing ratings that reflect the risk of default.

Dominion

A term that historically referred to a semi-autonomous polity that was part of the British Empire, now mostly used in the context of Canada.

Financial Market

A marketplace where buyers and sellers engage in the trade of assets such as equities, bonds, currencies, and derivatives.