Securities Dealers
Securities Dealers, 'deal' in a wide range securities including but not limited to shares, debentures, bonds, managed funds, bills of exchange, promissory notes and certificates of deposit.
The Profile of Securities Dealers
Most securities dealers advertise or let the public know that they are in the business of buying and selling securities. Through this, securities dealers get to have more brokers and other securities dealers approach them. Securities dealers do business with brokers and other securities dealers. They also participate in a "selling group" or otherwise underwrite securities. Securities dealers also provide services to investors such as handling money, extending credits or giving investment advice.
Securities dealers are often found on the stock exchange floor, and may be approached by brokers and other securities dealers for transactions and negotiations.
Securities dealers should be duly licenced through the Australian Securities Commission (ASC). Securities dealers and brokers who give superannuation advices may be required to hold a licence through the ASC, Insurance and Superannuation Commission (ISC) or may have an agreement with the relevant Life Company. Security dealers and brokers with unrestricted licence can advice on all types of securities.
Securities Dealers, Brokers and Investors
The correlations among securities dealers, brokers and investors can't be overemphasized. They play important roles in the process of buying and selling stocks on the exchange.
On the advice of brokers, the investors place orders to buy or sell stocks, which the receiving brokers execute. The brokers then would go to the area where securities are being traded. The brokers would approach the securities dealers who own the stocks that the investors require. The brokers would ask the securities dealers of their stock prices. The brokers and the securities dealers would negotiate on the price of stocks. Finally when the brokers and the securities dealers have reached an agreement and the brokers are satisfied with the securities price, the brokers complete the transaction.
Brokers-Securities Dealers
Some securities dealers are also brokers. Brokers-securities dealers may deal directly with the investors. They may buy and sell stocks from the client and vice versa.