Question

Briefly ‘explain’ the role of stock broker as an intermediary.

Answer 1

A stock broker acts as an important intermediary between investors and the stock exchange. Since individuals cannot directly buy or sell securities on a stock exchange, they must do so through registered stock brokers. The stockbroker facilitates the buying and selling of shares, debentures, and other securities on behalf of investors. Apart from executing trades, stock brokers also provide investment advice, market information, and portfolio management services. They charge a commission or broking fee for their services. Stock brokers ensure that transactions are conducted smoothly, fairly, and according to the regulations set by authorities like SEBI, helping to maintain transparency and trust in the securities market.