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Amwelladmin (talk | contribs) (Created page with "An Intermediary acts as a full Principal if, even if at Buyer’s request, it purchases an Asset from Seller for its own account (the Principal Purchase). A full Principal may...") |
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An Intermediary acts as a full Principal if, even if at Buyer’s request, it purchases an Asset from Seller for its own account (the Principal Purchase). A full Principal may (but need not) also enter a swap contract with Buyer paying the return of the same Asset (Asset Swap). | {{anat|brokerage|}} | ||
An Intermediary acts as a full [[Principal]] if, even if at Buyer’s request, it purchases an Asset from Seller for its own account (the Principal Purchase). A full Principal may (but need not) also enter a swap contract with Buyer paying the return of the same Asset (Asset Swap). | |||
*Under the Asset Swap, Buyer may take full economic exposure to the Asset; | *Under the Asset Swap, Buyer may take full economic exposure to the Asset; | ||
*Nevertheless the Asset Swap gives Buyer no legal or beneficial title to the Asset. | *Nevertheless the Asset Swap gives Buyer no legal or beneficial title to the Asset. | ||
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*A True Principal is not remunerated by Buyer for the Principal Contract at all. | *A True Principal is not remunerated by Buyer for the Principal Contract at all. | ||
**The True Principal will receive all compensation from Buyer under the terms of the Asset Swap (or subsequent principal contract for the sale of the Asset to Buyer). | **The True Principal will receive all compensation from Buyer under the terms of the Asset Swap (or subsequent principal contract for the sale of the Asset to Buyer). | ||
*There is no | *There is no [[commission]] payable on a True Principal contract. | ||
{{seealsoagent}} | |||
*[[Executing broker]] | |||
*[[ | |||