The duties of a stock broker
A stock broker is an agent who represents clients to buy or sell stocks and other securities.
The term is applied to both companies that deal in securities and their employees, who technically are registered representatives working for the brokerage. To most investors, however, the broker is the person they call when they want to invest in or trade stocks.
Most individual brokers work in offices far removed from the stock trading floors.
A stock broker represents the client, seeking the best deal to buy or sell stocks. Most brokers deal in all types of securities and many also handle commodity futures.
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An individual broker may also advise a client on when to buy or sell a stock or what to watch for in market dealings, but is not a licensed investment adviser.
A broker takes an order from a client to buy or sell a stock, passes it along through his brokerage firm's network to a floor trader -- in a market like the New York Stock Exchange -- or a dealer in that stock on the Nasdaq electronic market.
Once the transaction is completed, the broker relays the information to the client and arranges to transfer any stock certificates or other paperwork. Individual brokers are paid on commissions, usually as a percentage of the value of the trade. Commissions and fees vary. Some brokerage firms call themselves "discount brokers," offering trades at a single price.
Brokers generally are governed by a "suitability role," meaning they should recommend only investments that meet a client's financial goals and needs. Both brokerage firms and individual brokers are regulated by the Securities and Exchange Commission forecasting volatility and option prices of the s&p 500 index pdf specific markets, like the NYSE.
An individual broker must pass a test administered by the Financial Industry Regulatory Authority, or FINRA. Once a candidate passes that test, he must complete registration through a brokerage firm, which in some cases requires registering with a securities commission in each state in which he does business.
Brokerage firm requirements for individual brokers vary, but most require some on-the-job training before an applicant takes a FINRA test. Generally a candidate must have worked for a brokerage firm for at least four months before taking the test.
Some brokerages require up to two years of experience to become a registered broker. Individual brokers work the duties of a stock broker brokerage offices all across the country and pay varies with the company and locale, but the U. That covered brokers dealing in securities, financial services and commodities and included commissions and bonuses. The BLS projects that employment opportunities will grow by about 20 percent between and Bob Haring has been a news writer and editor for more than 50 years, mostly with the Associated Press and then as executive editor rally forex significato the Tulsa, Okla.
How to Be a Stock Broker (with Pictures) - wikiHow
Haring holds the duties of a stock broker Bachelor of Journalism from the University of Missouri. Skip to main content. Seeks Best Deal A stock broker represents the client, seeking the best deal to buy or sell stocks.
Handling the Trade A broker takes an order from a client to buy or sell a stock, passes it along through his brokerage firm's network to a floor trader -- in a market like the New York Stock Exchange -- or a dealer in that stock on the Nasdaq electronic market. Paid on Commission Individual brokers are paid on commissions, usually as a percentage of the value of the trade. Test and Registration Both brokerage firms and individual brokers are regulated by the Securities and Exchange Commission and specific markets, like the NYSE.
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Requirements Brokerage firm requirements for individual brokers vary, but most require some on-the-job training before an applicant takes a FINRA test.
Pay and Potential Individual brokers work in brokerage offices all across the country and pay varies with the company and locale, but the U. References 6 Princeton Review: Stockbroker Dallas Morning News: Know What Roles Stockbroker, Investment Adviser Play in Handling Your mM FINRA: Selecting Investment Professionals Securities Exam Preparation, Inc.: How Do I Become A Stockbroker?
Registered Representative Bureau of Labor Statistics: Securities, Commodities, and Financial Services Sales Agents. About the Author Bob Haring has been a news writer and editor for more than 50 years, mostly with the Associated Press and then as executive editor of the Tulsa, Okla.
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