|
|
Securities BrokersPublished by: First Research, Inc. Published: Sep. 14, 2009 - 10 Pages Table of Contents
AbstractThe securities brokerage industry in the US includes about 4,000 companies with combined annual revenue of more than $100 billion. Major companies include Charles Schwab and brokerage units of large financial services companies such as Citigroup, Morgan Stanley, and FMR (Fidelity Investments). The industry is highly concentrated: the top 50 companies account for more than 80 percent of revenue.COMPETITIVE LANDSCAPE Demand is driven by the returns of securities markets relative to alternative investments. The profitability of individual companies depends on efficient operations and good marketing. Large companies have economies of scale in operations and high name recognition. Small companies can compete effectively by offering better customer service. The traditional brokerage industry that sold stocks to individual investors has largely evolved into companies that either broker large stock trades for institutional investors or sell a variety of investment products to individuals. Instead of buying individual securities, many individuals now invest in mutual funds. PRODUCTS, OPERATIONS & TECHNOLOGY Major services are stock brokerage, investment advice, brokerage of bonds and derivatives, and the brokerage of mutual funds. Stock brokerage accounts for about 50 percent of industry revenue, investment advice for 15 percent, and brokerage of debt securities for 15 percent. Brokerage includes helping individuals and institutions buy and sell securities, without taking an ownership position in the securities. Brokers accomplish this by belonging to securities exchanges, such as the New York Stock Exchange (NYSE), the NASDAQ, regional exchanges, commodity ... Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||