A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. They execute buy and sell orders on behalf of their clients and may also provide investment advice and research.
Broker
Definition
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. They execute buy and sell orders on behalf of their clients and may also provide investment advice and research.
Example
When you want to buy shares of a public company, you place an order with your online brokerage account, and the broker facilitates the transaction by finding a seller on the exchange.
Key Points
- 1Facilitates trading for clients.
- 2Can be full-service or discount (online).
- 3Charges commissions or fees for services.
- 4Must be licensed to operate in financial markets.
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