BROWSE

Brokers

An investor does not deal with the buying and selling procedures on his own; he has a broker do them for him. This is obviously not done free of cost, a broker charges its clients for his services. A broker does not necessarily have to be an individual; there are various broker firms as well which functions collectively as a unit to handle your investment related affairs.

What does a Broker do?

Whether it is a firm or an individual, a broker has a number of responsibilities that he has to deliver.

To understand the duties of a broker, it would be helpful to imagine him as a grocery store which is visited by the shoppers who are interested in buying goods from this store which have been produced by different companies. The grocery store here would be the broker; the shoppers here will be the customers/clients who are interested in buying or selling to someone who is going to be the investor.

Other than being the middleman between the clients and the investors, a broker’s responsibility also includes to determine market values. Additionally he also has to take care of any advertisements that may have to be run to publicize properties that are on sale. When interested people contact him, a broker is the person who is going to be showing them properties to these prospective buyers.

A broker also has to have sound knowledge about selling and buying properties and other related areas because many a times, he is also going to have to advice clients about whether or not they should invest their money somewhere etc.

What do you need to be a broker?

Being a broker is no easy job. To be broker, a person needs to pass two licensing examinations, namely, Series 7 and Series 63. Both these exams are the official licensing examinations of the National Association of Securities Dealers (NASD). Passing these examinations is evidence enough that the person in questions knows what goes in and out of the industry that he is about to be a part of, he has sound knowledge about business, about what to sell and how to sell it.


Further Reading


Real estate brokers view the college curriculum
www.tandfonline.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Information brokers and the use of budgetary and financial information by politicians: the case of PortugalInformation brokers and the use of budgetary and financial information by politicians: the case of Portugal
www.tandfonline.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Broker beauty and boon: a study of physical attractiveness and its effect on real estate brokers' income and productivityBroker beauty and boon: a study of physical attractiveness and its effect on real estate brokers' income and productivity
www.tandfonline.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Assessing the costs and benefits of brokers in the mutual fund industryAssessing the costs and benefits of brokers in the mutual fund industry
academic.oup.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Derivative strategies used by United States commercial banks and security brokers for foreign exchange risk management.Derivative strategies used by United States commercial banks and security brokers for foreign exchange risk management.
elibrary.ru [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

The organization of innovation brokers: An international reviewThe organization of innovation brokers: An international review
www.tandfonline.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Is the compensation model for real estate brokers obsolete?Is the compensation model for real estate brokers obsolete?
link.springer.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

The welfare effects of non‐price competition among real estate brokersThe welfare effects of non‐price competition among real estate brokers
onlinelibrary.wiley.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Brokers, Bureaucrats, and the Emergence of Financial MarketsBrokers, Bureaucrats, and the Emergence of Financial Markets
papers.ssrn.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …

Minimum service requirements, limited brokers and menuing of servicesMinimum service requirements, limited brokers and menuing of services
link.springer.com [PDF]
… estate include building and development and, also, the major areas of selling, financing … dents may designate a specific busi- ness major in accounting, economics, finance, management, or … developed a questionnaire to determine how practitioners (real estate brokers) view the …



Q&A About Brokers


How do brokers differ from dealers?

Brokers execute trades for their clients while dealers trade for themselves.

Are there different types of brokers?

Yes, there are different types.

What is a broker?

A broker is an individual or firm that helps investors buy and sell securities.

What are the responsibilities of a broker?

The responsibilities of a broker include being the middleman between clients and investors, determining market values, taking care of advertisements, showing properties to prospective buyers, having sound knowledge about selling and buying properties, advising clients on whether or not they should invest their money somewhere etc.

What does NASD stand for?

NASD stands for National Association of Securities Dealers

Why do you have to take both exams if one exam has enough questions to cover everything related with being a stockbroker ?

Because passing only one exam will not make you eligible for licensure in all states . You must pass both exams because each state has its own requirements regarding licensure .

Which test is easier ?

Neither test is easier than the other , but most people find that Series 63 tends to be easier than Series 7 .

What are some examples of broker-dealers?

Some examples of broker-dealers include independent firms, subsidiaries or divisions of commercial banks, investment banks and investment companies.

Who can be considered as brokers?

Anyone who helps investors buy or sell securities can be considered as brokers.

What is a broker-dealer?

A broker-dealer is an organization that engages in the business of trading securities for its own account or on behalf of its customers.

Which exam covers more material ?

Neither exam covers more material than the other , but each test has some questions that don't appear on the other test .

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