A stockbroker is the middle man in any exchange of securities between two parties. Put simply, he is the guy that runs between the company you wish to invest (in the event you are trading stocks) in and yourself. Their job is not to give advice on the topics of which stocks you buy; however, if you choose the right broker they can help you make an informed choice as they are well aware of stock market trends as they are coming and going. Whilst a broker may not have contact with the person in charge of delegating stocks to individuals for any particular company, they have access to area of the stock exchange where trades take place.
A stockbroker generally charges a percentage of what you wish to spend on any given stock. Some brokers may even charge you a percentage of the profits that you have made on any specific sale. While they a working as a free agent (or part of a brokerage) they have no say on what specific stocks you buy and when. Their job is to make the sale. Although if they offer you advice it is generally best to take it because they know the industry better than most people because it is their job to mediate between buyers and sellers.
Stockbrokers are required to follow specific regulations and are generally required to be licensed. This is in part to help protect traders but it also helps protects the companies. Whilst stockbrokers are not investment advisors or financial advisors as such; they can play these roles if the broker is qualified enough. Brokers can also be delegated power over your portfolio in order to make financial decisions on your behalf. They are there to make your job easier when you trade on the stock market. However, with the advent of electronic stock trading the reliance on stockbrokers is become less and less.
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stock exchange
According to the securities contracts and regulation act a stock exchange is regarded to be a group individuals that have been appointed for the purpose of assisting and regulating the buying and selling of securities. So a stock exchange can be a national level stock exchange or a regional level stock exchange as well. The national stock exchange or more commonly referred to as the NSE was started in the year 1993. Now it is one of the largest stock exchanges in the country and offers a platform to traders and investors to trade in stocks, securities, bonds as well as other financial instruments.
Share trading can easily be done over the national stock exchange. Infact it was one of the first stock exchanges in the country that went online. Now if you want to trade in stocks through the national stock exchange then you can easily do so if you have a demat account. You could for NSE share trading on the online website or could also do it through a broker or a sub broker who is associated with the national stock exchange.
The bombay stock exchange or the BSE is the oldest stock exchange in the country. More than nine hundred trading members are associated with the bombay stock exchange and it provides trading to investors and traders in over 4500 equities as well as greater than a thousand debt securities. Just like the national stock exchange the bombay stock exchange provides a trading platform for people to trade in derivative instruments like stock options, stock futures, index futures as well as index options.
The mix of thirty companies consists of companies from various industries like the telecom industry, banking industry, IT industry and others. The index also comprises of the mid caps and the BSE small caps index. Every day trading on the bombay stock exchange begins at 9.55am and goes on till the market is open till 3.55 pm. If you are interested in share trading through the bombay stock exchange then you can trade on your own or approach a registered broker or a sub broker who is associated with the bombay stock exchange.