Broker is an agent who executes the order of his client, yet he can act many roles. Explain any two different roles of a broker?
Answers
Broker has multi-functional role in trading and business activities. So besides being an agent who executes the order of his client, performs many roles. The two different roles of a broker include :
1. He sometimes act as a buyer or seller and becomes the principal party in the deal.
2. To furnish Market Research and Market Data is another role of brokers.
Explanation:
The key role of a broker is to trade stocks on behalf of the client for which he uses a brokerage account. The stocks in question are generally mutual funds and bonds. However, there are different types of brokers present in the market such as insurance brokers, real estate broker. The insurance broker works with different insurance companies and provides policies to his clients. The real estate broker helps the client sell a property.