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Investment Banks Brokerage (SECURITIES BROKERS AND DEALERS (Brokers (Pure…

- - - - Detailed financial information required by prospective buyers to make an offer for the company
    - - Signal the desire to go forward with a purchase and outlines preliminary terms
      - Issued by prospective buyer
      - IB will negotiate terms of sale and rank competing offers
    - - IB assists in making inquiries of the interested parties
    - - Upon receipt of letter of intent
    - - IB will provide detailed analysis of the current market value for similar companies
    - - Based on findings and negotiation of both parties
        
        the definitive agreement is converted into legally binding contract
- - - - act as agents for investors in the purchase or sale of securities.
    - - match buyers with sellers, and they are paid brokerage commissions.
  - - - by standing ready to buy and sell securities at given prices
    - - dealers holds securities that can rise or fall in price
- - - - Specify Buy Order (maximum acceptable price),
      - Sell Order (minimum acceptable price)
    - - Tells the broker to sell off stocks once it reaches a certain price
    - - Buy and sell at market price
  - - - Loans in advance
        
        by the brokerage house to help investors to buy securities
    - - provides a package of financial services
- - - - Avoid security’s mispricing
      - IB sells the securities on commission basis with no guarantee regarding the price the issuing firm will receive
    - - buyers must be large enough to purchase large amount of securities at one time
      - securities are sold to a limited number of investors rather than to the public as a whole