A
stockbroker
is, first and foremost, an agent who acts for clients. He or she may either charge sales fees, called commissions, for executing buy and sell orders for the client or impose an annual asset-based fee that covers the cost of some or all of the transactions the client makes. Many brokers provide advice and guidance on specific investments, and may also act as financial advisers who take a broader look at the client’s long-term financial goals. In the first instance, the client relationship is transaction-based and in the second it is advice-based.
In order to sell
securities,
brokers must pass the General Securities Registered Representative Examination ("Series 7"). They may also have to pass an exam on state law, obtain other securities licenses, and must meet continuing education requirements.
