stockbroker

noun

stock·bro·ker | \ ˈstäk-ˌbrō-kər

Definition of stockbroker

: a broker who executes orders to buy and sell securities and often also acts as a security dealer

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Other Words from stockbroker

stockbrokerage \ ˈstäk-ˌbrō-k(ə-)rij

\ noun

stockbroking \ ˈstäk-ˌbrō-kiŋ

\ noun

Examples of stockbroker in a Sentence

Recent Examples on the Web

The Supreme Court on Wednesday upheld Securities and Exchange Commission efforts to sanction stockbrokers for disseminating false statements to clients. — Brent Kendall, WSJ, "Supreme Court Sides With SEC in Broker False Statements Case," 27 Mar. 2019 Radziwill, the younger sister of former first lady Jackie Kennedy Onassis—and once one half of the most famous pair of sisters in the world—was born Caroline Lee Bouvier to stockbroker John Vernou Bouvier III and socialite Janet Lee Bouvier. — Alessandra Codinha, Vogue, "Lee Radziwill Is Dead at 85," 16 Feb. 2019 Such an arrangement harks back to the era when exchanges were owned by their members, typically stockbrokers. — Alexander Osipovich, WSJ, "Wall Street Firms Plan New Exchange to Challenge NYSE, Nasdaq," 7 Jan. 2019 Former stockbroker Anastasios Belesis, known as Tommy, tried eight times to scrub complaints filed between 2012 and 2015 -- none passed, according to regulatory records. — Coulter Jones, WSJ, "Finra Arbitrators Let Thousands of Brokers Purge Infraction Records," 17 Nov. 2018 The cast — led by the charmingly winsome Mitchell Jarvis as Mitch, our stockbroker-cum-band reuniter, lover, dreamer, and Alex Brightman impersonator — performs it with loud conviction. — Aja Romano, Vox, "Gettin’ the Band Back Together is a giant musical comedy dad joke. To hate it is to hate joy.," 28 Aug. 2018 So were 2016, 2015, 2014—and every year since stockbrokers first gathered in New York in the early 1790s. — Jason Zweig, WSJ, "No, Stocks Aren’t Cheap, but Don’t Act Rashly," 21 Aug. 2018 Federal prosecutors in Los Angeles called the case against Theresa Lynn Tetley—a 50-year-old former stockbroker who bought and sold several million dollars' worth of bitcoins—the first of its kind in the region. — Cyrus Farivar, Ars Technica, "Woman who once bought bitcoins for $300,000 cash in paper bags sent to prison," 11 July 2018 The startup was the idea of Maine resident Libby Pratt, who went through bankruptcy, but came out of it to launch a stockbroker career. — Elizabeth Llorente, Fox News, "Students, families struggle to repay billions in crushing loan debts," 6 Sep. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'stockbroker.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

20 May 2019

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The first known use of stockbroker was circa 1706

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More Definitions for stockbroker

stockbroker

noun

Financial Definition of stockbroker

What It Is

A stockbroker is a person or a company that acts as an intermediary between buyers and sellers of stocks.

How It Works

Stockbrokers are often paid a commission, which is a percentage of the customer's purchase or sale price, though some receive a flat fee per transaction or a mix of the two.

Stockbrokers must have Series 7 and Series 63 licenses; other licenses are often required for specific types of brokers. For example, some stockbrokers must also obtain a Series 3 license if they want to trade certain financial products such as futures and commodities. To obtain a Series 7 license, the applicant must pass the Series 7 exam (also called the Qualification Examination for General Securities Representative), which primarily covers the seven critical functions performed by registered representatives: seek business for the broker/dealer, evaluate customer needs and objectives, advise clients, manage customer accounts and account records, explain the securities markets and the factors that affect them, execute orders for clients and monitor client portfolios. The National Association of Securities Dealers administers the test.

There are many other types of brokers in the financial world. For example, a commodities broker specializes in trading commodities, a floor broker handles orders on the floor of a stock or commodities exchange and a full-service broker offers brokerage services and sells other financial products such as insurance, tax planning or research conducted by other members of the brokerage firm. A discount broker essentially executes trades on behalf of customers and does little else. Brokers are not the same as research analysts, who analyze and make recommendations about certain stocks.

Why It Matters

Stockbrokers are some of the most important people in any market because they bring buyers and sellers together and thus create liquidity and efficiency in the market.

However, stockbroker commissions eat into returns, so investors should shop for a stockbroker that provides an appropriate level of service. For instance, the extra cost of a full-service broker may be worth it for people who don't have the knowledge or inclination to stay on top of complicated investing or financial planning. Likewise, new investors or those with complex portfolios might find more comfort in full-service brokers. Investors who hold their investments for a long time are usually less bothered by higher trading commissions because they don't trade that often.

Source: Investing Answers

stockbroker

noun