An investor does not deal with the buying and selling procedures on his own; he has a broker do them for him. This is obviously not done free of cost, a broker charges its clients for his services. A broker does not necessarily have to be an individual; there are various broker firms as well which functions collectively as a unit to handle your investment related affairs.
Whether it is a firm or an individual, a broker has a number of responsibilities that he has to deliver.
To understand the duties of a broker, it would be helpful to imagine him as a grocery store which is visited by the shoppers who are interested in buying goods from this store which have been produced by different companies. The grocery store here would be the broker; the shoppers here will be the customers/clients who are interested in buying or selling to someone who is going to be the investor.
Other than being the middleman between the clients and the investors, a broker’s responsibility also includes to determine market values. Additionally he also has to take care of any advertisements that may have to be run to publicize properties that are on sale. When interested people contact him, a broker is the person who is going to be showing them properties to these prospective buyers.
A broker also has to have sound knowledge about selling and buying properties and other related areas because many a times, he is also going to have to advice clients about whether or not they should invest their money somewhere etc.
Being a broker is no easy job. To be broker, a person needs to pass two licensing examinations, namely, Series 7 and Series 63. Both these exams are the official licensing examinations of the National Association of Securities Dealers (NASD). Passing these examinations is evidence enough that the person in questions knows what goes in and out of the industry that he is about to be a part of, he has sound knowledge about business, about what to sell and how to sell it.
Financial education is so important, but barely taught at all in our schools. Having resources online is great, but not if they are inaccessible to so many. Thanks 508!