stockbroker
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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
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Examples of stockbroker in a Sentence
Recent Examples on the Web
When Julie’s old lover, Gil, now a millionaire, returns from Brazil to scoop her up, and Gwen’s stockbroker fiancé, Perry, lays out his dream of a proper suburban life, both women dither over what to do. — Jesse Green, New York Times, "Review: ‘The Royal Family of Broadway,’ This Time in Song," 5 July 2018 Some of the Yippies became Yuppies in the go-go 1980s — Jerry Rubin famously became a stockbroker. — James Sullivan, BostonGlobe.com, "Whatever happened to those radical boomer activists from the ’60s and ’70s?," 6 June 2018 Born into a socially prominent family — his father was a stockbroker and partner in the firm E.F. Hutton & Co. — Mr. Dillman attended an elite boarding school and graduated from Yale University before pursuing a career in the arts. — Adam Bernstein, Washington Post, "Bradford Dillman, multifaceted and prolific actor of stage and screen, dies at 87," 19 Jan. 2018 Past and present personnel include choral directors, voice teachers, freelance solo singers, doctors, a stockbroker and even a dog trainer. — John Von Rhein, chicagotribune.com, "Singing the praises of the Chicago Symphony Chorus, at 60," 20 Mar. 2018 The 20,000-square-foot mansion at 854 Fifth Avenue was built in 1905 for R. Livingston Beeckman, a stockbroker and future governor of Rhode Island, and was designed by Warren & Wetmore, the firm that worked on Grand Central Terminal. — Sam Dangremond, Town & Country, "Manhattan's Last Gilded Age Mansion Is for Sale," 27 Apr. 2017 In 1935, Bill Wilson and Bob Smith, a stockbroker and a surgeon, started A.A., and formulated 12 principles to guide alcoholics to sobriety. — Katrine Jo Andersen, The New Republic, "Rejected by A.A.," 27 June 2018 After a business degree at a regional university, Mr. Pape worked for a short time as a stockbroker in Melbourne before starting his own financial advising business. — Amelia Lester, New York Times, "Australians Can’t Get Enough of the Barefoot Investor," 29 June 2018 The daughter of George Ransom Hartman, a stockbroker, and Mary Alice Duff Hartman, a homemaker, the former Mary Theresa Hartman was one of seven children. — Frederick N. Rasmussen, baltimoresun.com, "Mary T. O'Meara, founder of library at Sacred Heart School of Glyndon, dies," 26 June 2018These 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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More Definitions for stockbroker
stockbroker
nounFinancial 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
English Language Learners Definition of stockbroker
: someone whose job is to buy and sell shares of stock for other people
See the full definition for stockbroker in the English Language Learners Dictionary
stockbroker
noun
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Kids Definition of stockbroker
: a person who handles orders to buy and sell stocks
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