What is a Stockbroker?  A Stockbroker (or simply Broker) is and Agent, or firm of Agents, that charges a fee or commission for arranging to buy or sell shares for an investor client.

Nowadays the internet supports many Discount Brokers who allow you to trade shares at smaller fees.  Unlike Stockbrokers, Discount Brokers do not provide personalized advice on what to but or when to sell.

Stocks and Shares  Historically investments in stocks and shares out perform savings accounts over most periods of several years.  It is, of course, possible to lose some or even all of your investment when share dealing.  However, provided shares are held over a long enough period, and your risks are spread across a range of different companies and market sectors, Share Dealing is generally recognised as a sound means of earning a return on your investments.  There are two basic means of earning money from shares: dividends and capital growth

How to Buy and Sell Shares.  There are costs associated with share dealing.  You are buying and selling a share of a company - consequently everything has to be properly recorded and registered.  When you buy and sell shares, a share certificate will need to change hands - this is a valuable document that physically represents your shares.  To buy and sell shares you will need to go through a share dealer or stockbroker.  You will usually be charged a commission - a fixed sum, a percentage of the value of the deal or a combination of the two.

What to look for from a Stockbroker.  You should use a Stockbroker to help you develop and manage your share portfolio.  You should enter into a formal agreement with your Broker to provide you with a service over and above individual trading deals.  Your Broker should gather information about your investment needs and preferences and advise on specific deals to build up and manage your portfolio accordingly.

Stockbrokers, Discount Brokers and share dealing services may be found online - compare a few to find those offering the services you require at the best rates.  Remember - shares can go down as well as up.

Able was I ere I saw Elba

Financial Information Services; Banks; Offshore Banks; Venture Capital; Savings; Share Dealing
Annuities, Retirement Finance, Mortgage Offset, Rental Mortgage

Home | Elba-BIS | Site Map | Links