--%>

Describe the role of a broker in security transactions

Describe the role of a broker within security transactions? How are brokers compensated?
Brokers handle orders to purchase or sell securities. Brokers are agents who work in support of an investor. While investors call with an order, brokers work on their behalf to search someone to take the other side of the proposed trade. If investors desire to buy, brokers find sellers. If investors desire to sell, brokers search buyers. Brokers are compensated for their services while the person whom they represent, the investor, pays them a commission onto the sale or purchase of securities.

   Related Questions in Finance Basics

  • Q : Difference in annuities due or ordinary

    Normal 0 false false

  • Q : Define Budget Budget : It is a plan of

    Budget: It is a plan of operation stated in terms of financial or other resource necessities for a particular period of time.

  • Q : Depict the slope of the line Normal 0

    Normal 0 false false

  • Q : Define Allocation Allocation : The

    Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items

  • Q : Market share of large bank holding

    Have the large bank holding companies enhanced their market share at the cost of smaller institutions?No. A study conducted through the Federal Reserve Bank of New York reveals that the increase in the concentration of assets is primarily becaus

  • Q : Underwriting a new security issue for

    What does an investment banker do while underwriting a new security issue for any corporation? While underwriting a new security issue an investment banker purchase it and after that resells it to investors.

  • Q : Describe the sales forecasting procedure

    Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

  • Q : How are financial trades made in an

    How are financial trades made in an over the counter market?On the contrary to the organized exchanges that have physical locations, the over the counter market contain no fixed location, or more accurately, it is everywhere. The over the counte

  • Q : What is Proposition 98 Proposition 98 :

    Proposition 98: An initiative passed in the year November 1988, and amended in the year June 1990 election, which provides a minimum funding guarantee for school districts, community college districts, and other state agencies which give direct elemen

  • Q : Define Price Increase Price Increase :

    Price Increase: Budget adjustment to reflect the inflation factors for particular operating expenses constant with the budget instructions from the Department of Finance.