(stok broh-ker-ship) (n.)
The practice of buying and selling investments for a third party. Stock brokers evaluate information on various financial instruments like mutual funds, trusts, stocks, pension plans and bonds. Based on a specific client's requirements or upon evaluation of the client's risks and potentials in investing, the stock broker creates a suitable investment plan and carries out most of the transactions involved. The stock broker also maintains the client's portfolio and generates financial reports for further assessment. Stock brokers are essentially the sales representatives that facilitate transactions between financial markets and private or corporate investors. They work for various investment firms authorized by the stock exchange.
Clients signify their intent to trade in the stock market and supply the stock broker with the necessary information, such as the price they want to buy or sell certain assets. The stock broker evaluates the profitability or strategic benefit of the deal and facilitates its completion in the trading room or brokerage.
A bachelor's degree in any major is usually a sufficient requirement to be a stock broker. However, agents who aim for more job opportunities in the field might need to obtain a master's degree, particularly in business administration. With better education or training and enough experience, a stock broker may be assigned bigger investment accounts to manage, such as those belonging to large companies, banks, or prominent private investors. A stock broker may also be promoted to a managerial or executive position in the investment firm.#BR#