Stockbroking | ||
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Stock broking is where a stockbroker (who is a regulated professional broker) buys and sells securities and shares on behalf of investors. This process is done through the stock exchange, which is a mutual organization or corporation that facilitates the trading of shares and other securities between stockbrokers. There are many stock exchanges all over the world, in which shares and securities can be traded, including the NASDAQ in America, Australian Securities Exchange (ASX), Bombay Stock Exchange, Tokyo Stock Exchange, London Stock Exchange, Madrid Stock Exchange and São Paulo Stock Exchange (BOVESPA).
Stockbrokers can perform a variety of different roles for clients in the stock broking process. The three main roles a stockbroker can perform for a client are 'Execution Only', 'Advisory Dealing', or 'Discretionary Dealing'. The execution only role of the stockbroker is to specifically carry out the clients instructions on whether to buy or sell their shares or other securities. The advisory dealing role of the stockbroker is to advise their clients on what shares they should consider buying and/or selling, but ultimately the decision to trade is on the client. Discretionary dealing is where the stockbroker buys and sells shares or securities on the clients behalf, based on the investment objectives of the client. Some major stockbrokers around the world are; If you would like to learn more about stockbroking, click here
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