On-Line Trading Supply Chain

The trading of corporation derivation to the public has been going on for more than 200 years (NYSE, 2006). Over the years the relinquish for chain for buying and wandering equity stock has changed with innovations in technology. Today, the old brick and mortar environment of equity trading is creative activity replaced by virtual trading by means of websites wish Ameritrade, E-Trade, and TradeStation. Brick and Mortar When a privately held high society needs bullion to expand their business, preferably often they choose to sell map of the company through and through a public stock sacred offering. To facilitate this process an enthronization banker is most often composite helping range the company and determine the price of each consider of stock. Once the value of each share of stock is determined and the amount of specie needed by the company are complete, the investment funds banker forms a family line of broker/ leads who take on the responsibility of b oth purchasing all(prenominal) the shares of stock the company has to offer or to help sell in an initial public offering. The investment banker and syndicate members adjoin a subsidisation for each share of stock exchange (NASD, 2006). For example, if one share of stock is being offered at a price of one dollar, the investment banker and syndicate may hitch a 20 cent concession for their efforts.

The process in which the stock is offered to investors prior to the development of the meshwork was generally through brokers calling investors via the telephone. Another common itinerary was the actual inclose front or authority of a broker/dealer where individual investors cou! ld actually walk into an office and purchase new-fangled stock offerings directly. These offices were branch offices of a frequently larger sloshed like Merrill Lynch, Morgan Stanley, and Charles Schwab who might have been members of the offering syndicate. The investors who... If you want to give a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay