Fact fiction liquidating loan self
When using a stockbroker for financial guidance, one must be made aware that they do get paid on a commission, based on the stock/mutual fund they sell, and also through Class Distinction/Operating Expense Fees/Services Fees/Shareholder Fees.Thus, a conflict of interest arises concerning a stockbroker who offers his/her service as a financial planner, because their revenue is generated as a direct result of your investment in the stock/mutual fund that they broker to you.Thus your return on investment may not be as great, and the advice they give you might not be in your best interest.However, some mutual funds and stocks can only be purchased through a broker: in such cases their services are required to purchase the financial instrument in question.Transactions by stockbrokers in the US and UK In the US: When acting as an agent, the stockbroker typically charges the client a flat fee and/or a percentage-based commission for undertaking the trade, and the price quoted the client must be the best price available in the market.When acting as a principal, the trade could be with another market participant or one of the stockbroker's clients.Roles similar to that of a stockbroker include investment advisor, financial advisor, and probably many others.
The stockbroker works as an agent matching up stock buyers and sellers.A transaction on a stock exchange must be made between two members of the exchange a typical person may not walk into the New York Stock Exchange (for example), and ask to trade stock. In addition to actually trading stocks for their clients, stockbrokers may also offer advice to their clients on which stocks, mutual funds, etc. Philadelphia was the center of American finance during the first forty years of the new United States.In 1790, the country's first stock exchange was founded there and Chestnut Street was home to the nation's most powerful financial institutions.Today, most of the once well-known corporate brand names including mid-sized firms such as Smith Barney have been swallowed up by global financial conglomerates.Discount brokers (such as E-Trade, Scottrade, and TD Ameritrade) have taken a large share of the business by offering highly discounted commissions, but the companies do not offer investment advice in return--all they do is execute orders.
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Other jurisdictions are thought to have similar rules.