Market Participants

25 December 2020, 09:27

Now that you have a basic understanding of what the financial markets are, let us look at the various stakeholders:

Commercial Banks – Retail and investment banks that accept deposits from and give loans to the public to make a profit

Brokers – A person or a company that arranges transactions between a buyer and seller. Voice brokers do so verbally, while electronic brokers are usually using digital platforms to facilitate these transactions.

Institutional Investors – Entities that pool money to invest in assets. These can include commercial and central banks, pension funds, and hedge funds.

Central Banks – A national bank that provides banking and financial services, as well as implement monetary policies for its country’s government. Examples include the Bank of England (BoE), and America’s FED (Federal Reserve).