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In a riskless principal transaction, the broker buys and sells securities on behalf of a client without taking on any risk, while in an agency transaction, the broker acts as an intermediary to facilitate a trade between a buyer and a seller without taking ownership of the securities.

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What is the Difference between primary and secondary market in transaction as related to flow of fund in transaction?

What is transaction what it contains


What is a riskless principal trade and how does it differ from other types of trades in the financial market?

A riskless principal trade is when a broker buys or sells a security on behalf of a client and then immediately sells it to the client at the same price, without taking on any risk themselves. This differs from other trades in the financial market because the broker is not holding the security in their own inventory and is simply acting as an intermediary, making a profit from the spread between the buying and selling prices.


Difference between book-runner and lead manager in bond transaction?

Same thing


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.


What is the difference between a principle and principal loan, and how does it impact the overall repayment process?

The difference between a principle and principal loan is that the principal is the initial amount borrowed, while the principle is a fundamental rule or belief. In terms of loans, the principal amount is the original sum borrowed, while the principle refers to the basic terms of the loan agreement. Understanding this difference is important because the principal amount determines the total repayment amount, including interest.

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What is the Difference between primary and secondary market in transaction as related to flow of fund in transaction?

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What is a riskless principal trade and how does it differ from other types of trades in the financial market?

A riskless principal trade is when a broker buys or sells a security on behalf of a client and then immediately sells it to the client at the same price, without taking on any risk themselves. This differs from other trades in the financial market because the broker is not holding the security in their own inventory and is simply acting as an intermediary, making a profit from the spread between the buying and selling prices.


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·A nested transaction is a transaction that is logically decomposed into a hierarchy of sub transaction. A distributed transaction is logically a flat, indivisible transaction that operates on distributed data.


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