What does a Stock Broker do?

Answer:
A stock broker is a salesperson who specializing in buying and selling securities.

Stock brokers usually work for a stock brokerage house such as Charles Schwab or Merrill Lynch. These professionals assist you in buying and selling shares of stock, much like a middle man between you and the stock market.

In order to become a stock broker, one must pass two licensing exams known as Series 7 and Series 63. Once licensed, stock brokers are authorized to solicit business, advise clients, and execute transactions on their clients behalf.

Full service brokers assist and advise their clients about investments while discount brokers simply carry out your instructions. Full service brokerages offer more services and products along with higher fees. If you want personal attention and are comfortable with the advice given, full service stock brokers can be of tremendous help so long as they understand your financial goals and tolerance for risk. Keep in mind however, that they usually get paid by commission.

When you want to buy a share of stock, you call your stock broker who in turn buys the shares directly from the market. Likewise, when you want to sell your shares of stock, a quick phone call is all you need to do. The stock broker takes care of the transaction.