What is the primary sources of funds for brokerage firms?

Question

Quizplus · Accepted Answer

The primary sources of funds for brokerage firms are other financial institutions such as banks, investment banks, and asset management companies. These institutions provide loans, lines of credit, and other forms of financing that allow brokerage firms to operate and lend to their clients. While individual savings may contribute to the overall funds held by brokerage firms, it is not the primary source of funds. Premiums paid on policies and employee/employer contributions are not relevant to the operations of brokerage firms.

What Is the Primary Sources of Funds for Brokerage Firms