Stock Brokerage Firms
The stock brokerage firms are regulated agencies that trade in shares and other instruments on behalf of their clients.
They earn a fixed rate of commission in buying or selling, whether the client makes profit or loss in a particular trade.
But the primary aim of the broker is to make his client earn profits through the trade.
A broker has no control over the prices of shares.
The price of a share is decided and influenced by a variety of factors like political climate, law of supply and demand and the state of the economy of the country in which the company is established and the global industrial climate as a whole.
When the goods are in abundant supply, the share prices of the company which manufactures such goods may remain static.
When the goods are in short supply, the price may skyrocket.
What affects the share price is not the turnover, but the net profit the company is able to make from the turnover.
Closures, takeovers, mergers and bankruptcies are some of the important factors that drastically affect the share prices.
The quality that differentiates the broker from an investor is the excellence of knowledge of the former.
Once an investor opens the account with the broker, he can self-direct one's account by informing the broker as to the type of shares to buy or sell.
He has the final say on trades, but it is usual for the broker to advice investors on trading, based on their analysis and research-oriented assessment of market trends.
A system called "discretionary dealings," is in vogue when the investors leave the decision to trade to the broker.
Brokers are supposed to act in the best interests of the clients, and this mutual trust paves way for prosperity of the clients.
With the abundant experience of dealing with hundreds of clients brokers are trained well and they are intelligent strategists.
The brokers are aware of the importance of timing in investments and they strive to build for the investors a good portfolio, which gives the highest returns with least risk.
With the advent of internet, E-trade transformed both-the broker as well as the investor.
They must thank the facility of e-trade for their own reasons.
Broker's client base has expanded fast as the common man has taken to share trades.
That was not the position some decades ago.
The investors can trade from the comfort of their drawing room.
They have the choice of working hours and they need not visit the brokerage firms or set foot on the floor of the exchange.
Trade of any volume is possible from home.
Day traders have taken the maximum advantage of the e-trade, for better or worse.
Investment in shares is a mater of intuition as well as specialization.
Trading in shares is not as simple as it appears to be.
Brokers charge an agreed rate of commission, and this commission may vary from client to client, depending upon the type of services availed.
Brokers have many packages to offer.
Some big brokering houses, offer a wide range of value-added services apart from the basic trading facility.
In order to become a stock broker in the United States, a candidate must pass the General Securities Representative Examination.
There are three types of stock broking services: 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.
The process of analysis of shares by the broker is specialized, as they view the present status and the future growth possibilities of a particular share, from every possible angle.
To expand their client-base, they take care to earn the goodwill of the investors.
It is in the interest of the investor, small or big, to avail the services of a reputed broker.
They earn a fixed rate of commission in buying or selling, whether the client makes profit or loss in a particular trade.
But the primary aim of the broker is to make his client earn profits through the trade.
A broker has no control over the prices of shares.
The price of a share is decided and influenced by a variety of factors like political climate, law of supply and demand and the state of the economy of the country in which the company is established and the global industrial climate as a whole.
When the goods are in abundant supply, the share prices of the company which manufactures such goods may remain static.
When the goods are in short supply, the price may skyrocket.
What affects the share price is not the turnover, but the net profit the company is able to make from the turnover.
Closures, takeovers, mergers and bankruptcies are some of the important factors that drastically affect the share prices.
The quality that differentiates the broker from an investor is the excellence of knowledge of the former.
Once an investor opens the account with the broker, he can self-direct one's account by informing the broker as to the type of shares to buy or sell.
He has the final say on trades, but it is usual for the broker to advice investors on trading, based on their analysis and research-oriented assessment of market trends.
A system called "discretionary dealings," is in vogue when the investors leave the decision to trade to the broker.
Brokers are supposed to act in the best interests of the clients, and this mutual trust paves way for prosperity of the clients.
With the abundant experience of dealing with hundreds of clients brokers are trained well and they are intelligent strategists.
The brokers are aware of the importance of timing in investments and they strive to build for the investors a good portfolio, which gives the highest returns with least risk.
With the advent of internet, E-trade transformed both-the broker as well as the investor.
They must thank the facility of e-trade for their own reasons.
Broker's client base has expanded fast as the common man has taken to share trades.
That was not the position some decades ago.
The investors can trade from the comfort of their drawing room.
They have the choice of working hours and they need not visit the brokerage firms or set foot on the floor of the exchange.
Trade of any volume is possible from home.
Day traders have taken the maximum advantage of the e-trade, for better or worse.
Investment in shares is a mater of intuition as well as specialization.
Trading in shares is not as simple as it appears to be.
Brokers charge an agreed rate of commission, and this commission may vary from client to client, depending upon the type of services availed.
Brokers have many packages to offer.
Some big brokering houses, offer a wide range of value-added services apart from the basic trading facility.
In order to become a stock broker in the United States, a candidate must pass the General Securities Representative Examination.
There are three types of stock broking services: 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.
The process of analysis of shares by the broker is specialized, as they view the present status and the future growth possibilities of a particular share, from every possible angle.
To expand their client-base, they take care to earn the goodwill of the investors.
It is in the interest of the investor, small or big, to avail the services of a reputed broker.
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