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What is the role of a broker in security transactions? How are brokers compensated?

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Question ajoutée par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date de publication: 2014/04/06
SREEDEVI SUNILKUMAR
par SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

Brokers handle orders to buy or sell securities. Brokers are agents who work on behalf of an investor. When investors call with an order, brokers work on their behalf to find someone to take the other side of the proposed trade. If investors want to buy, brokers find sellers. If investors want to sell, brokers find buyers. Brokers are compensated for their services when the person whom they represent, the investor, pays them a commission on the sale or purchase of securities.

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