Stock market brokers are the people who buy and sell stocks for investors. As an investor it is very difficult for you to TRADE a share or any amount of stock on your own. To trade stocks, you must go through a broker. Brokers have actual licenses that allow them to buy and sell shares of stock. They also have much quicker access to the stock market exchanges than you or I do. They know how to read the stock market quotes quickly.
How it works is this, let us say you want to buy five hundred shares of IBM's stock. However you personally cannot buy IBM shares of stock, we just cannot purchase stock, the same way we buy groceries at store. We read a free stock ticker to get the latest quote.
To purchase our shares of IBM stock, We sign up with a discount online broker. The discount online broker would then purchase or buy stocks of on our behalf. When we're ready, we would then call the broker or go online on a computer and sell the stocks. The process of buying and selling stocks is called trading. Many of these stocks trade on how investors read overseas stock markets news.
For the brokers service, they take a small percentage of every transaction that you do in the stock market. So when you buy a stock, the broker earns a commission. When you sell a stock, the broker also takes a commission on the sale.
There are different types of brokers, but the best broker especially for the beginner or intermediate or even advanced investor, is the online discount broker. Many online discount brokers allow you to trade stocks very cheaply in the stock market. This reduces the overall cost of trading and increases your net profits when you actually sell the stock.
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