Broker

Short Answer
A broker is a licensed professional who buys and sells financial securities on behalf of clients in exchange for a commission or fee.

Broker

Definition

A broker acts as an intermediary between buyers and sellers in financial markets, facilitating the trading of securities such as stocks, bonds, mutual funds, and other investment products. Brokers are licensed professionals who provide various services, including executing trades, offering investment advice, managing portfolios, and conducting market research.

There are different types of brokers, including full-service brokers, who provide a wide range of services and personalized advice, and discount brokers, who offer trade execution with minimal fees and limited advisory services. Online brokerage platforms have also become popular, providing investors with direct access to trading and investment tools. Brokers earn their income through commissions on trades, fees for services, and sometimes through spreads on buy-sell transactions.

Broker

Examples

  1. A full-service broker managing a client's investment portfolio and providing personalized financial advice.
  2. A discount broker offering low-cost trade execution services through an online platform.
  3. A real estate broker facilitating the buying and selling of properties between clients.

Broker

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