What is the difference between an agency for investment and one for speculation? | Ask Banky

Editor-in-Chief Mohamed Salah

ع

Editor-in-Chief Mohamed Salah

What is the difference between an agency for investment and one for speculation?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

The agency relationship, including investment and speculation, differs in terms of the nature of the relationship, the fee, and the risk-bearing.

As an investor, determine whether the bank acts as an agent for a fee or as a speculator with a share of the profit, as this defines the accounting method and liability.

Source

Discussion

Join the discussion

Sign in to add your comment or reply to other readers.