Securities dealings play a crucial role in financial markets, involving the buying, selling, and trading of securities such as stocks, bonds, and derivatives. The roles of securities dealings include:
1. Market Making: Providing liquidity to markets by buying and selling securities.
2. Proprietary Trading: Trading securities for the firm’s own account.
3. Agency Trading: Buying and selling securities on behalf of clients.
4. Risk Management: Managing exposure to market risks and volatility.
5. Price Discovery: Determining fair market prices for securities.
6. Liquidity Provision: Providing buyers and sellers with access to markets.
7. Order Execution: Executing trades efficiently and at favorable prices.
8. Securities Lending: Lending securities to other market participants.
9. Short Selling: Selling securities not owned by the firm.
10. Arbitrage: Exploiting price differences across markets. Securities dealings facilitate market efficiency, liquidity, and price discovery, enabling investors to buy and sell securities, and allowing firms to manage risk and generate profits.
