What does an investment or brokerage firm primarily do?

An investment or brokerage firm primarily facilitates transactions between buyers and sellers, acting as an intermediary in the financial markets. This means they are responsible for executing buy and sell orders on behalf of their clients, ensuring that trades are completed efficiently and at the best available prices. By providing this service, these firms help to create market liquidity, allowing investors to enter and exit positions easily.

Facilitating transactions involves a range of activities, including maintaining trading infrastructure, providing access to financial markets, and executing trades promptly. Additionally, many brokerage firms offer a platform for investors to monitor market conditions and research potential investment opportunities as they execute their trades.

Other options may seem relevant but do not capture the primary function of these firms. While some investment firms provide advisory services or manage funds, their core role remains centered on connecting buyers and sellers and enabling the trading process. The emphasis on transaction facilitation highlights the essential function these firms serve in the broader financial ecosystem.