broker(redirected from Stock brokers)
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When interviewing prospective brokers, you should look for one with a clean NASD record, great referrals, and stability in his or her business. In addition, he or she should not be transaction oriented but should instead be concerned about your values and goals and be willing to realize that the best trade may be no trade. In summary, you should look for a financial advisor rather than just a "broker."George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA
A broker acts as an agent or intermediary for a buyer and a seller. The buyer, seller, and broker may all be individuals, or one or more may be a business or other institution.
For example, a stockbroker works for a brokerage firm, and handles client orders to buy or sell stocks, bonds, commodities, and options in return for a commission or asset-based fee.
Stockbrokers must pass a uniform examination administered by the NASD and must register with the Securities and Exchange Commission (SEC).
A floor broker handles buy and sell orders on the floor of a securities or commodities exchange. A real estate broker represents the seller in a real estate transaction and receives a commission on the sale.
If as a real estate buyer you hire someone to represent your interests, that person is known as a buyer's agent. A mortgage or insurance broker acts as an intermediary in finding a mortgage or insurance policy for his or her client and also receives a commission.
brokera business such as a stockbroker, insurance broker, commodity broker, which acts as a market intermediary in bringing together buyers and sellers of a financial asset, financial service or commodity See AGENT, TRADER/DEALER, STOCK MARKET, COMMODITY MARKET, INSURANCE.
An agent employed to make bargains and contracts for compensation. In the real estate industry, a broker does not make contracts and bind his or her principal but,instead,acts as an intermediary between buyers and sellers.
• The broker-in-charge or qualifying broker in an office is responsible for setting office poli- cies, supervising agents in the execution of their legal responsibilities, and complying with all regulatory requirements. All contracts with consumers are with the broker, who is the only one legally permitted to enter into such relationships. The broker may then delegate some responsibilities to agents or other licensed salespersons, but does not thereby relieve himself or herself of liability.
• Brokers have fiduciary responsibilities to their principals, called clients. They must exercise honesty, integrity, care, and skill in carrying out their duties. All other persons, called customers, are owed the duty of honesty.
• The broker must submit all written offers to the principal as soon as received and may not hold any offer while waiting for a more attractive one.
• All earnest monies coming into the possession of the broker must be deposited into an escrow account as soon as possible according to the instructions of the offer, but it may hold a check, undeposited, in a file if the offer states the check may not be deposited until the offer is accepted.
• All client monies, such as from property management activities, must be maintained in an escrow account and cannot be comingled with the broker's other funds.