A broker is a reseller. As a rule, a broker professionally mediates in the purchase and sale of goods, securities, services, insurance, promotes the conclusion of purchase and sale transactions by bringing partners together. Stockbrokers are part of the exchange staff, conduct trades, and register the verbal consent of the buyer’s and seller’s brokers to conclude a transaction. The broker receives remuneration, as a rule, from each of the parties involved in the transaction, in an amount depending on the amount of the transaction.
- Stockbrokers in Western countries, who are part of the exchange staff, conduct trades and register the verbal consent of the buyer’s and seller’s brokers to conclude a transaction.
- A market broker is a stockbroker who is in charge of quotes for securities or currencies.
- An insurance broker is an intermediary between the insurer and the policyholder if he is directly in the staff of the insurance company – an insurance agent.
- Real estate broker is a term common in the post-Soviet space and refers to specialists who dealt with the sale and purchase of the real estate. Was in circulation in Soviet times: just remember the underground broker from the movie “For family reasons” performed by Vladimir Basov. After the collapse of the USSR, there was also such a term as a black broker, which was called those who illegally committed fraud with real estate, even by committing particularly serious crimes (murders of real estate owners).
The essence of the profession
The essence of the profession A broker is a person (natural or legal) who provides intermediary services to participants in various types of transactions that are concluded on stock exchanges (stock, commodity) or under insurance contracts, rental housing, transport chartering, etc. This is the definition of a profession. To simplify the wording altogether, it is a mediator.
Such a specialist performs each action exclusively with the consent and on behalf of his client. From him, he receives payment for his services. If a broker works on an exchange, he cannot determine the amount of commission on his own. This is done by the management (committee) of the trading floor.
Most of the operations on stock exchanges (both commodity and stock) are carried out by brokerage companies. Unfortunately, today not only officially registered firms with a license to operate, but also shadow ones work on the market. The latter must be avoided. What does a broker do? This specialist performs the duties of an intermediary in the process of purchasing and selling goods, as well as services (for example, insurance), shares, bonds. He should help the partners of the deal meet and in every possible way contribute to its conclusion.
The broker is always present in the personnel asset of the exchange and is engaged in conducting the trading procedure, registering the verbal agreement of brokers, the buyer, and the seller when making transactions. For his work, he naturally receives a fee, which is paid by each party. Its size largely depends on the amount for which the deal was concluded.
A broker can do:
- exchange trading;
- real estate.
Today in Russia and a number of English-speaking countries, a broker of this profile is often referred to as a broker. He works on exchanges, acting as an intermediary. This employee is assigned to assist the seller and the buyer so that they can conclude a mutually beneficial deal.
The duties of such a broker include conducting trading on the exchange, searching for potential partners in the transaction, and registering the latter. For the services listed, he receives a pre-agreed fee from both the buyer and the seller.
In addition, the broker has the right to reject the transaction for a number of reasons. One of the most common is non-compliance with the rules of registration by any party or the illegality of the contract. He also acts as an arbitrator, regulating disputes arising between the parties.
Brokerage is analytical in nature. Before proceeding with the transaction, the specialist is obliged to assess its benefits. To do this, he is interested in the product itself.
In addition, in order to make a correct forecast, it collects and thoroughly studies information about the business and financial reputation of firms that take part in the acquisition and sale. A separate clan of stockbrokers – course specialists who deal exclusively with quotes of currencies or securities.
This broker provides financial and consulting services. Such a specialist provides a professional appraisal of stocks, bonds, and derivative documents, researches a range of investment opportunities. He also studies the feasibility of investments. The work of a financial broker, like a stock exchange, is connected with analytics. This gives him the opportunity to practice in a narrowly focused area, for example, to specialize in corporate bonds. A big plus of cooperation with such a professional is his material interest: after all, in order to receive a good fee for his work, he will “squeeze out” the maximum from the client’s investments.
This is an intermediary who provides services to interested parties wishing to conclude an insurance contract. Its tasks include only combining demand (desire to issue a policy on favorable terms) with supply.
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