3

Sell Side

As we noted in Part 1 on entities, the activities related to intermediating between investors and the markets are generally referred to as the “sell side.” As illustrated in Figure 4.3 this includes primarily broker/dealers, although as we have seen the broker/dealer may be part of a larger financial organization.

image

Figure 4.3 The sell side requires the functions that permit it to serve as an intermediary between the investors and the market.

Brokers, dealers, and broker/dealers

We have described the overall functions of brokers, dealers, and broker/dealers that act as intermediaries standing between the customer and the markets.

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