Joseph Scott Audia on How Does A Stock Broker Work

A stockbroker is a middleman who has the power to buy and sell stocks and securities in a stock exchange on the investor’s behalf. Stocks are traded via exchanges. However, an investor cannot trade in stock exchanges directly. To purchase a stock or sell stock via exchanges, you need an intermediary who will help you with the contract. This middleman can be a person or a company who is authorized to buy and sell stocks and other securities on your behalf. Such a person or a company is known as a stockbroker. Stockbrokers are usually associated with a stockbroking firm, but they can also be independent people. For offering this service, a stockbroker charges a commission or a fee.

• Stockbrokers buy and sell shares on behalf of their customers and handle the associated paperwork. They also act as a record keeper and keep records of all statements, transactions, and so on

• Stockbrokers offer accurate suggestions on buying and selling stocks and other securities. Since they know the markets, they can suggest to a client what stocks to buy and sell and when to buy or sell them. They thoroughly research securities before making such suggestions.

• Stockbrokers inform their customers about any new investment opportunity in the stock market.

• Stockbrokers manage the client’s investment portfolio and offer regular updates to their clients about their portfolios. They also answer investment questions that a customer may have

• Stockbroker also helps a client to make changes in investment strategies based on the market conditions

Stockbrokers should be well-versed in the markets to offer their clients recommendations on when to buy and sell. They are accountable for finding their clients the best prices on stocks. Some of their primary duties comprise:

• Managing client investment portfolios

• Offering accurate investment recommendations to clients

• Staying up to date on the most recent financial news

• Accurately evaluating financial reports

• Making changes in investment strategies based on client goals and market conditions

• Updating clients regularly regarding the status of their brokerage accounts

• Finding new clients through cold calling and networking

Stockbrokers can become very successful over the course of a career. One of the major pros of this job is that you earn a base salary apart from commissions, and bonuses, and depending on whether they are hired by a firm as an employee or as an independent contractor, they would be compensated accordingly. This means that the more clients you sign and the more trades you make, the more you can earn.

Scott Audia states that stockbrokers usually work for a financial institution and spend the majority of their time in an office setting. They may also travel to meet with potential and current clients. Their work tends to be fast-paced and can be challenging at times. Stockbrokers should communicate with their clients regularly to offer updates regarding their investments.

Joseph Scott Audia is a Registered Representative currently working for the investment firm VCS VENTURE SECURITIES, LLC. He has more than two decades of experience as a Stock Broker. He has run his own branch office for over ten years where he has overseen the management of several other brokers as well as managed and retained dozens of his clients’ accounts for more than a decade. His honesty, clear-cut nature, and deep knowledge of the stock market and investment strategies are exemplified by the dozens of clients that have trusted him over the years with their investments and continue to do so.