Financial Trader

A Financial Trader buys and sells financial assets without significantly transforming (or designing) them. Banks, investment firms, and other financial institutions that invest for their own account are included in this business model. Example:

• when Merrill Lynch becomes the investment banker for a to-be-listed firm on a commitment offering basis, it.purchases the shares of the firm (the

industry standard is at a 7% discount) and effectively re-sells them on public listing.