| Other than your job or career, the most
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| | salary in addition to their commission.
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| important thing to you is your
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| | A full-service broker, much like a
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| investments. And, unless you own your
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| | full-service gas station, advises you on
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| own business, your investments are
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| | which stocks to buy. Full service brokers
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| actually more important than your career.
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| | are financial advisors, they tell you
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| Job security is not guaranteed, and
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| | what to do. However, full-service brokers
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| unless you want to work until you are 80
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| | don't always provide expert advice. Most
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| years old, you need to become familiar
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| | of the advice they provide is based on
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| with the bare essentials of investing and
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| | research done by analysts who work for
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| financial planning. Your investments are
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| | the brokerage house.
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| the key to your future security. So, we
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| | A discount broker is someone who gives
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| will cover some basics about stocks to
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| | you zero advice, and just executes your
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| get you started.
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| | market orders for you, but does nothing
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| Stocks are also know as equities because
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| | else. Therefore, a discount broker
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| a share of stock is a certificate of
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| | usually doesn't collect commissions.
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| ownership in a corporation. It is also a
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| | Instead, they usually charge a flat
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| claim on the earnings of the corporation.
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| | annual fee and are paid a salary.
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| Companies pay out a percentage of their
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| | Internet brokers such as Etrade or
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| earnings to shareholders in the form of a
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| | Ameritrade are discount brokers that work
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| dividend.
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| | on commission. They allow you to place
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| There are two different types of stock:
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| | your market orders online, and the
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| common stock and preferred stock. Common
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| | website itself is the broker. Internet
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| stock represents ownership in a
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| | brokers usually charge a much smaller
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| corporation. Holders of this type of
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| | commission than anyone else.
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| security exercise control by electing a
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| | A full-service broker offers a wider
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| board of directors and voting on company
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| | array of investment vehicles for you to
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| policy. Common stockholders are on the
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| | put your money in, such as stocks, bonds,
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| bottom of the priority ladder for
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| | derivatives, annuities, and some also
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| ownership structure. In the event of
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| | sell life insurance. A discount broker,
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| liquidation, common shareholders have
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| | on the other hand, doesn't have access to
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| rights to a company's assets only after
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| | all these investment vehicles. A discount
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| bondholders, preferred shareholders and
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| | broker makes money by opening up a lot of
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| other debtholders have been paid in full.
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| | accounts and having a lot of customers,
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| Preferred stock has a higher claim on
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| | but a full-service broker makes money by
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| the assets and earnings than common
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| | placing a lot of trades within your
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| stock. Preferred stock has a dividend
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| | account, because they receive a
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| that must be paid out before dividends to
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| | commission on each trade.
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| common stockholders, but preferred stock
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| | This is where you need to be careful.
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| often has no voting rights attached to
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| | Full-service brokers make money every
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| it.
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| | single time you place a trade. So, they
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| Stocks trade on an exchange. The largest
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| | have an incentive to persuade you to
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| exchanges where the best stocks trade are
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| | place a lot of trades, because that's
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| the New York Stock Exchange, American
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| | where they make their money. There are
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| Stock Exchange, and the NASDAQ. Within
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| | unscrupulous full-service brokers out
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| an exchange, there is the primary and
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| | there who do provide sagacious investment
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| secondary market. The primary market is
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| | advice, but who are so active with your
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| for the initial sale of shares in a
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| | portfolio that their commissions start to
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| company for the first time to the public,
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| | eat away at your earnings. Neophyte
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| as with an IPO. The secondary market is
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| | investors have unknowingly hired these
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| for the trading of shares between
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| | sorts of brokers, and when they get their
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| individual investors.
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| | annual statement they're shocked to find
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| Now that you understand the basics, you
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| | that they made a lot less than what they
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| need to learn how to actually buy a
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| | thought, and in some cases actually got a
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| stock. When you buy or sell a stock, you
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| | negative return on their investments.
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| must place the order through a broker,
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| | So, be careful when selecting your
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| who then transacts your business by
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| | broker.
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| placing the order on the market.
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| | I hope this information has helped you to
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| Stockbrokers are basically salespeople.
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| | get acquainted with stocks. Try to set
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| They work for brokerage houses. You've
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| | aside some money for investing and start
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| heard the names Merrill Lynch, Solomon
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| | while you are still young. The earlier
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| Smith Barney, Goldman Sachs. Those are
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| | you begin, the more money you can
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| brokerage houses. Brokers work at those
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| | potentially make down the road.
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| companies. Some brokers are paid a
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| | Carefully research the companies you are
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| straight salary, some are paid a
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| | going to invest in and you will do fine.
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| commission, and some receive a base
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| |
|
