The Investment Industry
is composed of a wide variety of firms. The
main players include independent full line brokerage firms, investment bank
subsidiaries of chartered banks, and discount brokers. Independent full line
brokerage firms offer a wide range of services, including underwriting, trading
of stocks, advice and research. In essence, the full service brokerage
subsidiaries of chartered banks offer the same services, however, banks'
brokerage firms may have a larger pre-established clientele. Finally, the
discount brokers are basic stock brokers that perform trades for clients who do
not want investment advice. Usually, this service is targeted toward the
sophisticated investor who does his/her own ...
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of Montreal are Wood Gundy, RBC Dominion, Evergreen, Scotia McLeod and
Nesbitt Burns respectively. In addition, the aforementioned chartered banks have
also branched into the discount brokerage sector.
As of December 1994, the Securities Industry as a whole included 158
firms, directly employs over 24,000 people, has operating revenue of $5.1
Billion and operating profit of $1.2 Billion (Appendix A). Within this industry
the largest firms ranked by revenue are: RBC Dominion Securities ($1 Billion),
Midland Walwyn ($480 million), Burns Fry ($416 million) and Nesbitt Thomson
($335 million) (Appendix B). It is evident that the industry is highly
concentrated in a small number of companies. The top 4 leaders in the industry
accounted for 44% of revenue, while the top 8 was 51%.
Industry information from 1993 displays further segregation, between
retail, institutional and integrated firms. Integrated retail-institutionalized
firms (RBC Dominion Securities, Scotia McLeod, Nesbitt ...
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comprised of active
retired and semi-retired individuals who have knowledge, time and disposable
income for investing purposes.
Moreover, younger generations who fear the elimination of the existing
CPP because of the aging population, are interested in "building a retirement
nest egg." (Fine, p. B21) Secondly, the fact that people want to be more
educated about the investments industry, ties into an additional cause for
growth in the industry. The market is offering more information to those who
want to be part of it. This additional information reduces investors' fear of
not knowing enough, and if they choose to take advantage of the available
information they can capitalize on it. ...
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The Investment Industry. (2006, November 9). Retrieved April 18, 2024, from http://www.essayworld.com/essays/The-Investment-Industry/55275
"The Investment Industry." Essayworld.com. Essayworld.com, 9 Nov. 2006. Web. 18 Apr. 2024. <http://www.essayworld.com/essays/The-Investment-Industry/55275>
"The Investment Industry." Essayworld.com. November 9, 2006. Accessed April 18, 2024. http://www.essayworld.com/essays/The-Investment-Industry/55275.
"The Investment Industry." Essayworld.com. November 9, 2006. Accessed April 18, 2024. http://www.essayworld.com/essays/The-Investment-Industry/55275.
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