The industry for securities is undoubtedly an exciting and fast paced This means that brokerage firms such as A.G. Edwards and Sonsmust always be watching the stock prices on every stock in the market sothat they can give their clients maximum profit. When A.G. Edwards andSons clients do well then in turn so does the brokerage firm. A.G.Edwards Inc. is not the biggest corporations in America, but yet it isstill a very large corporation and has great importance in the industryfor which it participates. This paper will give an in depth explanationabout how A.G. Edwards functions as a cor-poration. Along with competition from the government, banks and other brokeragefirms there is also probably the biggest factor involved of interestrates. Interest rates are indi-rectly proportional to the activity inthe stock market. This means that when the interest rates fall themarket for securities becomes active. This is due to the fact thatpeople want the highest yield on there money and when interest rates arelow, investing money into a bank would yield less money then it wouldhave before at a higher interest rate. So people tend to want to putthere money into something that will give them a higher yield and stocksare just that. An example of this inversely proportional relationship is always beingdemon-strated and was demonstrated in the past few years. At the end of1992 to the beginning of 1993 the volume in most businesses was atrecord levels obtaining a pre-tax net income for the whole industry of9.1 billion dollars setting a new record for the second year in a row(Hoovers Company & Industry Database, 1993, p. 1 (Hoover, 1993,p.1)). This trend continued when in the beginning half of 1993 offerings (newbusiness for the com-pany) exceeded those of 1992 (Hoover,1993, p. 2). Examples of this are as follows; more than 700 billion dollars of debtwas issued in 1992 and then in the first half of 1993 an-other 440billion dollars of debt was ...
