ConsumerFight.com
The Best Consumer Help Website in the World
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| Copyright ConsumerFight.com 2007, 2008 All rights Reserved. |
INVESTING BASICS: PICKING A BROKER
May 18, 2008 - What Does a Broker Do?
Brokers? Who needs 'em?
Well, you do. In order to buy shares of stock, you need a stockbroker to help you with the
transaction. In the same way that CompUSA or Best Buy is the "middleman" between you and
computer manufacturers, the broker (also called a stockbroker) is the link between you and
the stock exchange.
To better understand what a broker is and how one operates, let's define the broker's role.
A stockbroker is a salesperson.
She works for a stock brokerage house (like Merrill Lynch or Charles Schwab).
The broker's job is to carry out your transactions. (If you like Chinese food, the broker may
also carry that out, but that's between the two of you.)
Common Questions About Stockbrokers
Q. How does a stockbroker get paid?
A. Brokers are paid by salary, commissions on sales, or a mix of both.
Q. What qualifies someone to become a stockbroker?
A. The glamorous life of stockbroker is not for everyone. Stockbrokers must pass two
licensing examinations called the Series 7 and Series 63. Successfully completing these
exams allows the broker to advise you, to solicit business from you, and to execute
transactions on your behalf.
So: a broker is employed by a brokerage house to facilitate your transactions and, in the case
of full-service brokers, to advise you in making your investment decisions.
Although a broker may do his own research, he is NOT a research analyst. He is not one of the
people about whom you might read, "Sylvester J. Quibble of Hackensack Associates raised
his estimate for Goosefeathers' fiscal year 1999 earnings from 19 to 35 cents per share, citing
resurgence in demand for eiderdown quilts among bilingual tots." Research analysts are other
folks who work for brokerages, and it is they who do that sort of enlightening, in-depth
research of a company's business and industry.
Click on the red link above to continue the story.
Source: The Motley Fool
May 18, 2008 - What Does a Broker Do?
Brokers? Who needs 'em?
Well, you do. In order to buy shares of stock, you need a stockbroker to help you with the
transaction. In the same way that CompUSA or Best Buy is the "middleman" between you and
computer manufacturers, the broker (also called a stockbroker) is the link between you and
the stock exchange.
To better understand what a broker is and how one operates, let's define the broker's role.
A stockbroker is a salesperson.
She works for a stock brokerage house (like Merrill Lynch or Charles Schwab).
The broker's job is to carry out your transactions. (If you like Chinese food, the broker may
also carry that out, but that's between the two of you.)
Common Questions About Stockbrokers
Q. How does a stockbroker get paid?
A. Brokers are paid by salary, commissions on sales, or a mix of both.
Q. What qualifies someone to become a stockbroker?
A. The glamorous life of stockbroker is not for everyone. Stockbrokers must pass two
licensing examinations called the Series 7 and Series 63. Successfully completing these
exams allows the broker to advise you, to solicit business from you, and to execute
transactions on your behalf.
So: a broker is employed by a brokerage house to facilitate your transactions and, in the case
of full-service brokers, to advise you in making your investment decisions.
Although a broker may do his own research, he is NOT a research analyst. He is not one of the
people about whom you might read, "Sylvester J. Quibble of Hackensack Associates raised
his estimate for Goosefeathers' fiscal year 1999 earnings from 19 to 35 cents per share, citing
resurgence in demand for eiderdown quilts among bilingual tots." Research analysts are other
folks who work for brokerages, and it is they who do that sort of enlightening, in-depth
research of a company's business and industry.
Click on the red link above to continue the story.
Source: The Motley Fool
