Advertisement
Securities traders can act either as principals or agents. Find out what they do in each role.
Traders act as principals when buying or selling securities for their own accounts or their employers’ accounts. Alternatively, traders can act as agents, buying or selling for clients’ accounts without ever assuming ownership of the securities. As agents, they are matching buyers with sellers, rather than purchasing and reselling the securities.
Example: “According to a study published by the Bank of Canada in 2017, large bank broker-dealers execute most bond trades as principals, buying or selling securities from their own inventories.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
You’ve reached your 40s, are mid-way in your career and realize you’ll never have a pension. Here’s how to...
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.
Have an RESP, now what? If you’re wondering how to withdraw that money to pay for school (or not),...
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Falling U.S. inflation leads to rate cut certainty, Walmart’s strong quarter, Barrick beats Franco-Nevada for the gold metal, and...
These 25 books, chosen by MoneySense contributors, money experts and finfluencers, will help you invest better, retire earlier, find...
How a small group of nuns in rural Kansas vexes big companies with their investment activism.
Do you only have limited cash to invest? Fractional trading makes company shares more accessible—just don’t skip the market...
Here’s how freelance workers and entrepreneurs in Canada can use the unique aspects of “working for yourself” to build...
