(redirected from Stock brokers)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial.
Related to Stock brokers: fidelity, Charles Schwab, Merrill Lynch


one who acts as an intermediary in a sale or other business transaction between two parties. Such a person conducts individual transactions only, is given no general authority by the employers, discloses the names of the principals in the transaction to each other, and leaves to them the conclusion of the deal. The broker neither possesses the goods sold nor receives the goods procured; brokers take no market risks and transfer no title to goods or to anything else. A broker earns a commission, or brokerage, when the contract of sale has been made, regardless of whether the contract is satisfactorily executed. The broker is paid by the party that started the negotiation. In practice, merchants and other salespeople act as brokers at times.

Brokers are most useful in establishing trade connections in those large industries where a great many relatively small producers (e.g., farmers) compete for a wide market. They operate in strategic cities and keep in active touch with the trade needs of their localities and with one another. They are important in determining prices, routing goods, and guiding production, and in those functions play a part similar to that of the highly organized exchanges. Brokers also negotiate trades in property not directly affecting production; examples are stockbrokers and real estate brokers.

Types of Brokers

Employment agents are really brokers, as they bring together the buyers and sellers of labor. Merchandise brokers arrange sales between manufacturers and wholesalers or retailers, between producers and users of raw materials, and sometimes between two manufacturers. Small concerns use retail brokers instead of maintaining their own sales forces. Insurance brokers bring together insurance companies and those who want insurance. They are most useful to those needing several types of insurance protection and to those whose large risks must be divided among many companies. Real estate brokers negotiate sales and leases of farms, dwellings, and business property and are often also insurance brokers. Ship brokers keep informed of the movement of vessels, of cargo space available, and of rates for shipment and sell this information to shippers. They serve tramp carriers in the main, inasmuch as the larger ship lines have their own agents. Such brokers also serve as post agents, in which capacity they settle bills for stores and supplies, pay the wages of the crew, and negotiate insurance for the vessel and cargo. They also arrange the sale of ships. In the organized markets, such as grain and stock exchanges, commission merchants and straight selling displace brokerage in large part, but between cities and where there is no active exchange, brokers in grain and other commodities are active. Members of organized exchanges usually act as commission merchants or trade on their own account. However, in the New York Stock Exchange a group of members called "floor brokers" perform the actual trading on the exchange floor for representatives of commission houses, taking no responsibility and receiving a small fee. In the United States, note brokers buy promissory notes from businessmen and sell them to banks. Traders in acceptances and foreign bills of exchange are known in the United States as acceptance dealers. Customs brokers are not actually brokers; they act as agents for importers in estimating duties and clearing goods. The pawnbrokerpawnbroker,
one who makes loans on personal effects that are left as security. The practice of pawnbroking is ancient, as is recognition of the danger it involves of oppressing the poor.
..... Click the link for more information.
 is a private money lender. Technology in the 1990s changed the nature and importance of some brokers, when the InternetInternet, the,
international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises (called gateways
..... Click the link for more information.
 allowed people to, for example, trade stocks and purchase insurance directly, without the aid (or with the minimum aid) of brokers.


References in periodicals archive ?
HSBC InvestDirect Securities has said that it has settled proceedings with markets regulator, Sebi, in connection with alleged violation of stock broker norms.
At the outset of the calendar year 2017, the market came under pressure when the then SECP chairman Zafar Hijazi issued hundreds of notices to the stock brokers seeking to know their sources of income and investment and such sources of their clients as well.
He lamented that stock brokers had no representation in regulatory affairs committee of PSX and they were the one who established PSX, Central Depository Company and National Clearing Company of Pakistan.
Veteran stock broker and former Philippine Stock Exchange president Ramon T.
The presentation was attended by some members of the executive management and stock brokers who were briefed about the bank's history, its financial and administrative performance since its inception in 2004 and the products and services provided to its customers and shareholders.
7 ( ANI ): A cloud telephony startup MyOperator has launched a new product for stock brokers to become SEBI compliant within 15 minutes without any hardware and software installation.
It solves the top 3 reasons people don't invest in the stock market: not enough money, little knowledge about stocks, and lack of trust in stock brokers.
Therefore, each stock broker should be geared to manage many retail accounts, Dr Godahewa said during the launch of the Colombo Stock Brokers Association website and also introduced code of principles of best practices at the event.
In its latest annual report for 2011-12, Sebi said that it conducted 35 specific purpose inspections of stock brokers to check their KYC process, the extent of due-diligence and compliance level with current regulatory and statutory framework in this regard.
The ICM has already launched two certification programmes namely; 'Stock Brokers Certification Programme' and 'Mutual Funds Distributors Certification Programme' on 22nd December 2009 for which it has been successfully conducting licensing examinations every quarter of the calendar year since February 2010, leading to certifications for stock brokers and mutual fund distributors.
ICM has released the results, passing percentage in Stock Brokers Certification Examination is 100 per cent and Mutual Fund Distributor examination is 66 per cent.
Subsequently, 24 stock brokers among 28 functioning stock brokers in the country except John Keells group led John Keells Stock brokers (JKSB), Cargills group led CT Smith Stock Brokers and three non members of Colombo Stockbrokers Association including Murtaza Jafferjee led J.