Stockbroker

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A broker is an individual person who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also broker and trading as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent —one who acts on behalf of a principal party in a deal.

A broker is an independent party, whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who broker and trading the sale of a property. Brokers also can furnish market information regarding prices, products, and market conditions. Brokers may represent either the seller or the buyer but not both at the same time.

An example would be a stockbrokerwho makes the sale or purchase of securities on behalf of his client. Brokers play a huge role in the sale of stocks, bonds, and other financial services. There are advantages to using a broker. First, they know their market and have already established relations with prospective accounts. Brokers have the tools and resources to reach the largest possible base of buyers. They broker and trading screen these potential buyers for revenue that would support the potential acquisition.

An individual producer, on the other hand, especially one new in the market, probably will broker and trading have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.

Before hiring a broker, it may be considered prudent to research the requirements relating to someone broker and trading the title. Some titles, such as real estate brokers, often have strict state requirements for using the term, while others, such as aircraft brokers, typically have no formal licensing or training requirements.

The word "broker" derives from Old French broceur "small trader", of uncertain origin, but possibly from Old French brocheor meaning "wine retailer", which comes from the verb brochieror "to broach a keg ".

Media related to Brokers at Wikimedia Commons. From Wikipedia, the free encyclopedia. For other uses, see Broker disambiguation. For the not-for-profit organization "the Brokerage", see The Brokerage Citylink.

Stanton, and Gregory A. Management of a Sales Force. Retrieved from " https: All articles with broker and trading statements Articles with unsourced statements from January Pages using div col with deprecated parameters Broker and trading category without a link on Wikidata Wikipedia articles with GND identifiers. Views Read Edit View history. This page was last edited broker and trading 30 Marchat By using this site, you agree to the Terms of Use and Privacy Policy.

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A brokerage firm , or simply brokerage , is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers. The staff of this type of brokerage firm is entrusted with the responsibility of researching the markets to provide appropriate recommendations, and in doing so they direct the actions of pension fund managers and portfolio managers alike.

These firms also offer margin loans for certain approved clients to purchase investments on credit , subject to agreed terms and conditions. Traditional brokerage firms have also become a source of up-to-date live stock prices and quotes. A discount broker or an online broker is a firm that charges a relatively small commission by having its clients perform trades via automated, computerized trading platforms rather than by having an actual stockbroker assist with the trade.

Most traditional brokerage firms offer discount options and compete heavily for client volume due to a shift towards this method of trading. Other ways to lower costs for these brokers is by executing orders only a few times a day by aggregating orders from a large number of small investors into one or more block trades which are made at certain specific times during the day.

They help lower costs in two ways:. Since investor money is pooled before stocks are bought or sold, it enables investors to contribute small amounts of cash with which fractional shares of specific stocks can be purchased. This is usually not possible with a regular stockbroker. Many broker-dealers also serve primarily as distributors for mutual fund shares.

These broker-dealers may be compensated in numerous ways and, like all broker-dealers in the United States, are subject to compliance with requirements of the US Securities and Exchange Commission and one or more self-regulatory organizations , such as the Financial Industry Regulatory Authority FINRA. The forms of compensation may be sales loads from investors, or Rule 12b-1 fees or servicing fees paid by the mutual funds. From Wikipedia, the free encyclopedia.

Comparison of online brokerages in the United States. Retrieved 10 October British Columbia Securities Commission. Thomas Smith 6 March Regulation of Investment Companies. Lexis Nexis Matthew Bender. Retrieved from " https: Brokerage firms Financial services. Views Read Edit View history.

This page was last edited on 8 February , at By using this site, you agree to the Terms of Use and Privacy Policy.