Stock Brokers
Stock brokers are individuals who handle the stock investments of individuals and companies. These professionals must be qualified for their job because they deal with the transaction of money and securities between companies and investors. Stock brokers have the main responsibility of completing transactions for their clients over the stock exchange. This is because stock exchanges only allow member stock brokers to make the actual transactions over their trading systems.
Basically, two roles are fulfilled by stock brokers. The first role is as an advisor. As an advisor, stock brokers have the task of informing their clients about market information, company information and specific trade information. It is also the stock brokers' job to compile information on their clients' current shares portfolio. When investing in shares it is always important to seek the expert advice of stock brokers.
Stock brokers are also divided into three different types. The first type are the discretionary dealing stock brokers. These individuals are authorised by their clients to make transactions on the market at their own discretion. After listing the concerns, objectives and finances of the client, these stock brokers decide which shares to buy and which companies to invest in.
The second kind are advisory dealing stock brokers. This is the most commonly used broker for newcomers to the stock market. Advisory stock brokers provide as much information possible on perspective trades, market projections and company profiles. Finally, the client makes the final decision as to what trades to complete. The stock brokers are then responsible for entering and finalising the transaction.
Stock brokers of the third kind are categorised as execution-only brokers. These individuals are basically there to carry out the trades that the client has already decided on. It is not uncommon for execution-only stock brokers to provide tidbits of advice to their clients. For the most part, however, the clients already know what they want.
