The brokers are a firm or persons who buy and sell stocks on behalf the investors for a commission and this commission charged is regulated by the Stock Exchange. The stocks are a share of the ownership of the company and they are sold by the owners to grow the company and to gain additional funds. They manage the financial portfolios, purchasing and selling the shares, providing advice and offers risk management based on the analyst research.
The stockbrokers work in the investment banks and firms and bring the buyers and sellers together in the market. There are some of the main responsibilities like providing investment advice to the clients, monitoring the stock market developments, managing and evaluating client's investments, understanding financial reports, buying new share issues and advising when to buy and sell the shares. They also work on anticipating changes of the client's financial assets and monitoring the market performance, creating important financial decisions and advising the clients on every issue they face in the investments.
They work with the trading activities that carry out for the investors and these activities include derivatives, investments, administration, research and corporate finance and other activities. The clients invest in stocks, buying securities, shares in mutual funds, bonds and other financial products.
When the stockbrokers act on behalf of the clients, they follow certain things like observing the highest standards of professional conduct, acting fairly to the needs, reducing the conflicts in the investment process, ensuring equal and fair treatment to their clients by taking appropriate measures for the growth and carrying out their instructions. Apart from these, there are other things such as carrying out the securities without any troubles, making smoother transactions, maintaining the accuracy for all the services rendered to them, handling the orders of the customers and taking care of all the transactions they do in the market.
They take all the responsibilities on the execution of the customer's orders and act for them in good faith. They always try to execute the orders in the best interests of the individuals in the best available terms. They try to prevent all the conflicts that occur in the trading activities and ensure that the orders are entered promptly in the name of the customers.
The stockbrokers are the persons who always think of their clients and record all the orders in a written form and all the instructions are recorded promptly. If any disputes happen in the transactions then they are able to provide the proof for the instructions received from the clients regarding the disputed transaction in their dealings.
There are other activities they do in the market like advising to the customers, disclosure of the orders, implement internal control procedures, proper supervision of the discretionary accounts, trading authority, communicating to the customers in regarding with the statements, objectives of the investments and many other activities they do in the share market. Hence, it is always wise to hire a stockbroker who is able to understand all your requirements and act accordingly. There are many other important activities that are done by the brokers in the stock market which may not be possible with the investors.
