Realized 1031 Glossary of Terms

Stock Broker

Written by The Realized Team | Jun 22, 2022 12:00:00 PM
A stock broker is an individual or firm that performs securities transactions on behalf of clients in exchange for a fee. Stockbrokers often work on behalf of a brokerage firm and handle transactions both for individual investors and institutional customers in exchange for commissions.

In today’s market, stockbrokers are critical for retail investors to obtain exposure to the market, because major exchanges such as the New York Stock Exchange (NYSE) require membership to trade on its exchange. Thus, retail investors cannot trade directly through an NYSE window and must hire a broker at a member firm to perform the transaction on their behalf.