When you sell your rusty chainsaw at a garage sale, you can work out the sale yourself. A buyer gives over the cash, you handover the chainsaw. Deal done.
However, more complicated transactions, or transactions involving more complex assets, might require someone in the middle to facilitate the transaction. That facilitator is known as the settlement agent.
They help the two parties complete the transaction, moving cash from one side to the other, and assets the other way. They become useful in situations where knotty legal niceties have to play out during the process...things that could be messed up if a knowledgeable party isn't in the middle, directing traffic.
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Finance: What is an Agency Cross Transac...4 Views
finance a la shmoop what is an agency cross transaction or cross trade and no
this has nothing to do with Jesus - an agency cross transaction arises when two [Agency cross transaction definition on 100 dollar bill]
clients want to trade in the same security within the same brokerage or
agency think about it like a home sale where the listing agent and the buyer's
agent both work for the same brokerage well in this case it's all about proper
disclosure it has to be made to both sides as to what's going on..why is this
such a big deal well because there isn't another set of eyes through a [Man peers through a curtain]
competitive agency looking in on this deal to be sure that fair market
practices are being applied and you know fair prices are being paid and this kind
of insider dealing happened a lot before the 1940 investment advisors Act was [Men shaking hands]
brought into place by the SEC which stipulated all kinds of rules and
regulations to help you know the unfavored little guy not get totally [Screw and shadow of drill appears]
screwed
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