The Definition of a Stock Broker
A stockbroker (general securities registered representative) is a licensed professional who buys and sells investment instruments on behalf of individuals and corporations. Stockbrokers match buyers with sellers in an attempt to complete a financial transaction.
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Stocks and more
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Unlike a bond broker who is licensed to sell mutual funds, variable annuities and insurance premiums, stockbrokers are licensed to sell the aforementioned plus corporate and municipal securities and options. Licensed stockbrokers are not allowed to sell commodities or futures.
Education
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There are no formal education requirements for stockbrokers, but most hiring firms require a candidate to have an undergraduate degree. Some firms prefer a candidate with a master's degree.
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Book of business
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Stockbrokers build a a list of clients, or a book of business. The basic method of building clientele is through the cold call. Investopedia defines a cold call as, "A method used by brokers to obtain new business by making unsolicited calls to potential clients."
Success traits
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The successful stockbroker has certain traits that help make her a success. She must have the ability to effectively communicate concepts which may be difficult to understand, sell these concepts over the phone and positively manage constant rejection.
Discount brokers
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Unlike a full service stockbroker who offers investment advice, the discount stockbroker only carries out buy and sell orders at a reduced commission.
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