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In a riskless principal trade, a market maker lines up both a buyer and a seller for a block transaction. The dealer will then buy the block of stock from one client, and immediately sell the block to the other client. The trade is riskless because the market maker brings both sides together as the agent, before taking the block into its account.
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Can there be riskless business?
Yeah - just got to find it :D
What distinguishes a risky choice from a riskless choice?
A risky choice involves uncertainty about the outcome, with both potential gains and losses. In contrast, a riskless choice guarantees a known outcome with no chance of loss.
What is the principal task of the International Trade Commission?
The International Trade Commission's principal task is to determine whether imports are injuring any domestic industry.
Where are the Principal trade centers of the us?
AnswerThe Stock Market.
What is the difference between an agency and principal trade?
An agency trade is when a firm buys or sells a security on behalf of a client to a third party. They will usually collect a commission for this service. During this transaction the firm does not own the security itself. A principal trade is when a firm buys or sells securities from their own account. Anytime the firm is buying or selling from within their own inventories, it is a principal trade. -Will Storey.
Principal of commerce notes for 1st year commerce?
distinguish among business , profession,and trade?
These Islamic berbers had been Ghana's principal rivals for control of the trans-Sahara trade?
Almorvids
What is a commercial town?
A town (bigger the a village but smaller than a city) where the principal means of livelihood is commercial trade.
What could the north do to hurt the south's trade during the civil war?
Effective naval blockade of principal ports, and control of the Mississippi River
What does the term arbitrage profit means?
Arbitrage profit is profit derived from a riskless (or near riskless) transaction. For example, say gold is selling on the London exchange for $800 per oz and gold is selling on the New York exchange for $804 per oz. Buying one oz of London gold and selling one oz of New York gold (trades in close proximity) provides an arbitrage profit of $4 (less transaction fees). The purchase and sale will likely have the effect of increasing the price of London gold and decreasing the price of New York gold. So for every subsequent trade, the arbitrage profit will be lower and lower until the prices are at parity.
What was one of the principal reasons for locating the fort and the new town on Manhattan?
protect the Hudson River and the Dutch West India Company's fur trade operations.
Do we write vice principal or vice-principal?
Vice-principal
