A stock broker is a financial professional who buys and sells stock on the behalf of customers who may be individuals institutions or corporations. Stock brokers work directly with one or more of the world's stock exchange establishments where they deal with floor brokers who negotiate stock prices. They also initiate purchases and sales and they oversee transactions. There are two different types of stock brokers. The first type is considered to be a "full" stock broker. Full stock brokers are responsible for providing insight and advice to their clients prior to the purchase and sale of stock shares. The second type is considered to be a "discount" stock broker. Discount stock brokers usually do not give any advice to their clients and they simply buy and sell stock based on direct instructions. According to the website ww2.prospects.ac.uk full service stock brokers make recommendations to their clients based on their own predictions on how well certain stocks are projected to perform. They also pass along information that is provided to them by stock analysts. A stock broker has a stressful job. Not only must they be extremely knowledgeable about the stock industry but they must take responsibility for recommending stocks that ultimately do not perform well. Because stock brokers invest other people or institution's money they can lose their reputation if they make negative recommendations and their clients lose money. Because stock brokers usually work on a commission basis it is important that they have an excellent reputation and a proven track record of investing success. The website careres.stateuniveresity.com states that stock brokers must achieve a minimum of a bachelor's degree and they must earn a license in order to be work as a stock broker. Stock brokers earn an average salary of $100245 per year but those with extremely large or high-level customer bases may earn significantly more.
|Education Required:||Bachelor's Degree|
|Tasks:||Advises clients on what stocks to buy.
Buys and sells stocks.
Analyzes clients' stock portfolios.
Researches trends in the financial industry.
|Also Called:||Securities Broker
Mutual Fund Broker