Basics Of Stock Broker

A stock broker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. A stock broker is a professional person or agency used by an investor to buy or sell securities on the open market. A broker may be employed by a brokerage firm. A transaction on a stock exchange must be made between two members of the exchange—an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker using Stock Tips.

Each client in the market of a prime broker will have certain technological needs related to the management of its portfolio. These can be as simple as daily statements or as complicated as real-time portfolio reporting, and the client must work closely with the prime broker to ensure that its needs are met. Certain prime brokers offer more specialized services to certain clients.
There are three types of stockbroking service.

•  Execution-only, which means that the broker will only carry out the client's instructions to buy or sell.
•  Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.
•  Discretionary dealing, where the stockbroker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf.