Finance

1. What are the economic functions financial intermediaries perform
Financial intermediaries for instance commercial banks, brokerage firms, and credit unions borrow money from savers and lend it to individuals who need to invest. This is in form of loans or government securities. Thus they transform financial assets via various economic functions which include provision of maturity intermediation and payment mechanisms, reducing risks through diversification, and reduction of contracting and information processing costs. Other financial intermediaries are exclusively involved in provision of consultancy services but at fees to potential investors. In addition, the institutions are good in that they bear risk on behalf of investors by investigating their savings in various sectors.    

2. What is the role of broker in the financial market
Brokers executes the demands of their clients (investors) and they also advice himher on viable investment opportunities in the stock market. In doing so, the brokers are the only persons who have access to initiate transactions in the stock exchanges and various financial markets. Other functions include provision of limited banking services and negotiating other securities such as buying bonds, options, mutual funds, and Exchange Traded Funds on behalf of the client in the financial market.    

3. How has that role changed since the inception of on-line investing
On-line investing has been significantly developed by the invention of internet and information is accessed by both the potential investors and online brokers on real-time basis. This system has eliminated middle-men, brought more freedom in accessing the stock markets, reduced commission charged to clients, provides abundant information, increased trade speed, and is reliable in terms of security with developments in the encryption technology. Thus, online investingbrokerage have liberalized the financial markets to a large extent.