What do stock brokers do_ _ Yahoo Answers business brokers orlando florida

What do stock brokers do_ _ Yahoo Answers business brokers orlando florida

Best answer: A stock broker is a broker, he provides the service of finding buyers and sellers when you wish to buy or sell stocks. You do the investing, you decide what to buy and what to sell. The reason why there’s a broker is because of how it all started.

Before there were brokers and before there were stock markets, what companies did and still do is approach wealthy individuals directly for investment, selling them partial ownership or shares in the companies. Now these wealthy individuals may on occasion decide that they would want to sell the shares that they owned but who could they sell them to? Back then they had to find the buyers and sellers themselves, whether they were friends, family or colleagues but that wasn’t a very easy thing to do.

Soon, a few people started brokering these trades for a fee, keeping phone books on people who would buy and sell various stocks and keeping in touch with these people and with other brokers doing the same thing.Business brokers orlando florida often they would make a habit of hanging out at specific locations whenever they wished to trade in a particular stock, maybe a coffee shop or just a street corner such that other traders would know to go to the same street corner if they wanted to buy or sell that stock. A common street for that was just outside the pallisade wall south of manhattan hence the term wallstreet but this became a nuisance as these middle aged men standing on street corners weren’t even attractive so exchanges were built which were huge rooms and seats at the exchange were sold on a subscription basis to control how many people could be in the room at a time. Trades out on the street were prohibited and because the number of seats were limited, brokerage houses formed where a number of brokers funneled their trades through the few seats that they had at the exchange.Business brokers orlando florida

To this date, the way a trading floor operates is that there are marked locations where a specialist wearing a brightly colored jacket would stand and he would be responsible for coordinating the trades for a specific stock, floor traders receiving instructions from their brokerage firms would walk from specialist to specialist to trade in the various stocks and commodities. It all used to be done with paper notes and there would be pages running the notes back and forth to clerks recording the transactions but today they have handheld data entry devices and bluetooth headsets.

Of course these traditional style exchanges are being replaced by purely computerized exchanges, NASDAQ is considered the first electronic exchange but it’s start was still in the era of the telegraph and telephone when computers were still building sized batteries of vacuum tubes and no one had dreamt of networking them together, of course that’s just an indication of how advance exchanges are compared to the technology at the time and todays exchanges are equally advance.Business brokers orlando florida

As a 14 year old, you would have to have your parents sign off on a custodial account since you cannot be legally held responsible for your trades. Once you have a custodial account, you would log on to a website, do your research with the provided tools and place your buys and sells there.