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stockbroker
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Definition of stockbroker
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Other Words from stockbroker
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Examples of stockbroker in a Sentence
Recent Examples on the Web
His father was a Wall Street stockbroker, and his mother was an avid theatergoer. — Washington Post, "Harold Prince, consummate Broadway impresario, dies at 91," 3 Aug. 2019 His father was a Wall Street stockbroker, and his mother was an avid theatergoer. — Nelson Pressley | The Washington Post, oregonlive.com, "Harold Prince, Broadway impresario behind hits such as ‘Phantom of the Opera’ and ‘Cabaret,’ dies at 91," 31 July 2019 A few minutes later, but not so soon as to appear suspicious, their new stockbroker pal would buy up all of Black’s shares. — Justin Rohrlich, Quartz, "How an undercover FBI sting busted an alleged multimillion-dollar stock fraud," 26 July 2019 To a stockbroker, schoolteacher or sportswriter, that is prime time. — Bill Dwyre, Los Angeles Times, "Manny Pacquaio tries, at 40, to prove he’s a fighter for the ages," 19 July 2019 The couple had two sons, Tony and Nick, a stockbroker, and two grandchildren. — Stefanie Dazio And Sandy Cohen, USA TODAY, "Steamy romance novelist Judith Krantz, author of 'Scruples,' dies at 91," 23 June 2019 The couple had two sons, Tony and Nick, a stockbroker, and two grandchildren. — NBC News, "Steamy romance novelist Judith Krantz dies at 91," 23 June 2019 The couple had two sons, Tony and Nick, a stockbroker, and two grandchildren. — Washington Post, "Steamy romance novelist Judith Krantz dies at 91," 23 June 2019 The couple had two sons, Tony and Nick, a stockbroker, and two grandchildren. — Sandy Cohen, BostonGlobe.com, "Judith Krantz, best-selling author of racy romance novels, dies at 91," 23 June 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'stockbroker.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for stockbroker
stockbroker
nounFinancial Definition of stockbroker
What It Is
A stockbroker is a person or a company that acts as an intermediary between buyers and sellers of stocks.
How It Works
Stockbrokers are often paid a commission, which is a percentage of the customer's purchase or sale price, though some receive a flat fee per transaction or a mix of the two.
Stockbrokers must have Series 7 and Series 63 licenses; other licenses are often required for specific types of brokers. For example, some stockbrokers must also obtain a Series 3 license if they want to trade certain financial products such as futures and commodities. To obtain a Series 7 license, the applicant must pass the Series 7 exam (also called the Qualification Examination for General Securities Representative), which primarily covers the seven critical functions performed by registered representatives: seek business for the broker/dealer, evaluate customer needs and objectives, advise clients, manage customer accounts and account records, explain the securities markets and the factors that affect them, execute orders for clients and monitor client portfolios. The National Association of Securities Dealers administers the test.
There are many other types of brokers in the financial world. For example, a commodities broker specializes in trading commodities, a floor broker handles orders on the floor of a stock or commodities exchange and a full-service broker offers brokerage services and sells other financial products such as insurance, tax planning or research conducted by other members of the brokerage firm. A discount broker essentially executes trades on behalf of customers and does little else. Brokers are not the same as research analysts, who analyze and make recommendations about certain stocks.
Why It Matters
Stockbrokers are some of the most important people in any market because they bring buyers and sellers together and thus create liquidity and efficiency in the market.
However, stockbroker commissions eat into returns, so investors should shop for a stockbroker that provides an appropriate level of service. For instance, the extra cost of a full-service broker may be worth it for people who don't have the knowledge or inclination to stay on top of complicated investing or financial planning. Likewise, new investors or those with complex portfolios might find more comfort in full-service brokers. Investors who hold their investments for a long time are usually less bothered by higher trading commissions because they don't trade that often.
Source: Investing Answers
stockbroker
noun
English Language Learners Definition of stockbroker
See the full definition for stockbroker in the English Language Learners Dictionary
stockbroker
noun
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