| Since you are entrusting someone else to increase | | | | 1. Execution - you instruct your stock market broker |
| your monetary returns, it is important to find a | | | | on when to buy and sell the stock shares that you |
| reputable stock-market broker to handle your | | | | want. They carry out your instructions, but will not |
| investments. A stock marketing is a licensed | | | | give you advice about your decision. You can consult |
| professional who can buy and sell stock shares or | | | | a different financial advisor for this if you desire. |
| other securities on behalf of an investor. A | | | | 2. Consultative - When your stock market broker |
| stock-market broker works on a commission basis, | | | | acts as a consultant, he will discuss with you his |
| often receiving bonuses and incentives for their | | | | views on the various companies and recommend |
| performance. | | | | whether you should buy, sell or hold on to your |
| What to Look for in a Stock-Market Broker | | | | shares. In this respect, he will offer you advice |
| There are many factors to consider when selecting | | | | concerning a decision that should be made about a |
| your stock market broker. | | | | certain stock. |
| 1. Are they licensed? | | | | 3. Discretionary - your broker makes all decisions to |
| 2. What is their commission structure? | | | | purchase and sell and contacts you periodically to |
| 3. How much experience do they have? | | | | keep you informed concerning your portfolio |
| A stock-market broker stays abreast of the best | | | | performance. |
| way to achieve the financial goals of their clients. A | | | | Before you may be able to select the best broker |
| good broker will strive to understand their needs, | | | | for your needs, it is important to first understand |
| offer high quality research, and provide sound advice | | | | your investment goals and philosophy. It is important |
| concerning investment opportunities. This is especially | | | | to carefully calculate the amount you are willing to |
| helpful to many clients, as some investors have no | | | | invest and assess the risk that you can afford to |
| idea how the stock market works. | | | | take when investing. Be very honest with your stock |
| How your Stock Market Broker Operates | | | | market broker concerning these points. A stock |
| 1. How does your broker approach investments? Is | | | | market broker who knows that you have a stable |
| he aggressive and high-risk or conservative and | | | | and conservative portfolio that you would like to |
| methodical? | | | | keep that way will make different decisions than a |
| 2. What process goes into deciding on an investment | | | | high-risk, active client. |
| stock? How much research is involved in a | | | | Remember when selecting a stock market broker |
| prospective stock? How many years of history does | | | | that it is your money. You may find a particular |
| he research? | | | | broker to aggressive or even too conservative for |
| 3. Are you involved in any selections as the investor? | | | | the type of portfolio that you want to build. Make |
| Does your broker work better in an execution or | | | | sure to emphasize your financial goals and risks. With |
| discretionary role? | | | | the right research, you are sure to find the perfect |
| There are often three levels of service that your | | | | match for your money in a stock market broker. |
| stock-market broker operates in: | | | | |