Share Market

A stockbroker is a person who invests in the stock market for individuals or corporations. The transaction in a stock exchange can only be made by members of the exchange. So, whenever individuals or corporations want to buy or sell investments they need a stock broker.

Brokers are the people who explain the workings of the stock exchange to their clients and gather information from them about their needs and financial ability, and then determine the best investments for them. After collecting full information on the needs of the investor they send the order out to the floor of the securities exchange via computer or phone. Once the transaction has been made, the broker supplies the client with the price of the investment. The chain stops at a stop where the buyer pays for the stock and the broker transfers the title of the stock to the client and performs clearing and settlement procedures.

It’s in the market’s and stockbroker’s interest that they learn the market thoroughly, with its ups and downs. In fact, his work and efficiency can be noted from his interest in the market. One cannot become a good stock broker with an eye on the money.

Stock broking is a tough job with long working hours and constant vigil on the market. Stockbrokers spend their time in a fast-paced office, usually working from nine to five. For any new broker it’s important that he build a good contact base through phoning his clients.

Stock brokers are called differently in different countries. In Canada, stock brokers are called “Licensed Representative” or “Investment Representative”. There in fact you have to be licensed enough to trade on stock exchanges. It’s done in order to trade derivatives and future wherein a person has to obtain respective licensing for these instruments. To become a representative one has to work for a licensed firm and pass 3 exams to prove one’s competency.

In the UK, brokers are required to pass the XII Certificate in Securities. This qualification is achieved by passing two exams. In the US, the stock broker is commonly called the registered rep or simply rep. It is obtained by passing the FINRA and being employed with a brokerage firm. It’s important for the broker to have one or another state insurance department licenses. Being a stock broker is not an easy cake walk. You need to procure licenses from the state authority or a government prescribed licensing authority to start functioning as one.