F129. Securities Brokers & Securities Dealers

Federal Reserve definition for F129 flow of funds table

Security brokers and dealers are firms that buy and sell securities for a fee, hold an inventory of securities for resale, or do both.

The firms that make up the sector are those that submit information to the Securities and Exchange Commission (FOCUS or FOGS reports).

Brokers and dealers are an important link in the transmission of funds from savers to the ultimate investors because they are a means of distributing both new security issues and those being resold on the secondary market.

Dealers in U.S. government securities that stand ready to buy from or sell to the Federal Reserve System assist in the implementation of monetary policy conducted through open market operations.

The major assets of the sector are collateral repayable from funding corporations in connection with securities borrowing, along with corporate and government securities held for redistribution and credit provided to customers.

Sector operations are financed largely with investment by parent companies, funds left on deposit by customers, security repurchase agreements, and bank loans.

copyright | privacy | home