What Is the Function of a Stockbroker?
A stockbroker is a licensed professional who buys and sells securities on behalf of a client. A stockbroker may perform many different duties for a client depending on the client's needs.
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Financial Adviser
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One of the primary functions of a stockbroker is to get to know their clients and their investment objectives. A clear understanding of the client's financial goal is essential to success for both the broker and the client. The stockbroker may advise the client on which financial vehicles to invest her money in to reach the financial goal.
Market Watch
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A stockbroker watches market trends. Stockbrokers stay up to date on companies that they commonly invest in as well as research the activities of new companies as potential investments for stocks. They also watch areas of investments such as technology and municipalities---common investment pieces relating to mutual funds---areas in which stockbrokers may also advise clients to invest.
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Transactions
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Stockbrokers will act as either a buyer or seller during a securities transaction. Whether buying or selling stocks, bonds or shares of mutual funds, a stockbroker will work with another stockbroker who is either buying or selling the security to complete the transaction and initiate any necessary paperwork required for the trade.
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References
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