What is the role of a broker-dealer in the trading of securities?

A broker-dealer plays a vital role in the trading of securities in New York. A broker-dealer is a person, company, or firm who has the authority to buy, sell, and trade securities, such as stocks, bonds, and other investments. Broker-dealers are required to be registered with the Securities and Exchange Commission (SEC) and must comply with the Investment Company Act of 1940. The primary role of a broker-dealer is to provide investors with access to the financial markets by acting as a market maker. Market makers provide liquidity and set prices for securities for the benefit of their customers. They act as intermediaries between customers and exchanges, facilitating the buying and selling of securities on behalf of their clients. Broker-dealers also provide advisory services, offering investors advice on how to manage their investments. They evaluate investments, analyze financial statements, and research the different markets to provide information to investors about the risks and potential returns associated with their investments. Finally, they are responsible for the execution of trades. They ensure that trades are conducted in accordance with the law and regulations. Together, these services provided by broker-dealers help make the markets more efficient and accessible to investors. They provide essential services in order to ensure that the trading of securities is conducted in a fair and orderly manner.

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What is the role of a broker-dealer in the trading of securities?

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