Firms that arrange deals in investments are known as what?

The designation for firms that arrange deals in investments is accurately represented by securities and futures firms. These firms primarily engage in the buying, selling, and trading of various financial instruments, which includes securities (such as stocks and bonds) and futures contracts. Their core function is to facilitate investment transactions on behalf of their clients or for their own accounts, providing access to the markets, executing trades, and offering advisory services.

Securities and futures firms play a crucial role in the financial system as they help create liquidity and price discovery. They are typically regulated by financial authorities to ensure compliance with legal and ethical standards within the investment landscape.

In contrast, mutual fund companies focus on pooling money from investors to invest in diversified portfolios; private equity firms invest directly in companies through equity or debt, often taking a controlling interest; and insurance brokers primarily deal with insurance products rather than investment arrangements. Thus, while these entities may engage with financial markets, they do not specifically encompass the breadth of activities associated with arranging deals in investments like securities and futures firms do.