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Stock Brokers and Integrity in Service

By Edited Dec 26, 2015 0 0

You will find the stock market and information about it almost everywhere these days. That isn’t to say that is a negative thing but it does mean that many of us have a veneer of familiarity with it though. For most people investing in stocks provides a way to build wealth for future needs like retirement or the education of your kids so being able to purchase shares in solid companies and receive returns on our investment via dividends is a great option to have open to us.

It could be though that you have more of an interest in stocks and investing than just as a way to build a nest egg. Perhaps you’re curious about what it takes to become a stock broker and actually participate in the stock market as a transactor instead of a mere purchaser of stocks, bonds or other investment vehicles. In this article we’ll go over a few of the things you might expect of a stock broker and try and fill out a bit of a picture of what they do on a daily basis.

The main job of a stock broker is to take care of the transaction order of clients who want to invest in various equities. Of course the client is likely to have a price point in mind at which they would like to either buy or sell their shares so the stock broker will need to be able to meet those expectations. Some stock brokers are more transaction agents while some brokers and brokerage firms provide full service option including research and recommendations. This can be helpful for inexperienced investors who aren’t familiar with the basics of researching and judging what financial commitments are sound and which carry more risk and are better avoided.

The ideal stock broker is able to manage the potential conflict of interest that comes with handling financial transactions for a client but also profiting more from the number of transactions than from the quality of decision making and advice he gives. Inexperienced investors need to be aware of this conflict of interest and not allow excessive trading in their accounts that could run up fees and commissions for the broker but leave their investment portfolio with a poor performance record.

If you are considering a career as a stock broker remember that providing the best possible value and service to your clients will pay off more in the long run than burning clients through excessive trading that will leave them with lackluster returns and potentially send them searching for other investment professionals to deal with in the future.


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