Share Broking
Share broking is the act of buying and selling trading stocks in behalf of other individuals or businesses. People or firms involved in share broking are called share brokers. These people or firms can only operate if they are authorized by the Australian Securities Exchange or ASX.
There are three types of share broking services that a broker or a brokerage firm may provide: execution only, advisory dealing, and discretionary dealing. In execution only service, share broking is limited on the execution of the client's order either to buy or sell shares. In advisory dealing, share broking involves providing the client with advices on what shares to buy or sell. In discretionary dealing service, stock broking involves establishing the client's investment and making dealing decisions on behalf of the client. Share broking fees may vary depending on the type of service that the client requires.
What is the process of share broking?
Share broking starts when a client gets the services of a broker or a brokerage firm to help him or her in investment decisions. After the client is able to comply with the requirements set by the brokerage firm or the broker, the actual share broking commences.
Share broking services provided greatly depends on the needs of the client. In execution only service of share broking, the client may place his or her order either to buy or sell shares or stocks through the phone, the Internet or face-to-face with the broker. Then, the broker will go to the stock exchange floor and seek out the securities dealer of the company where the client wants to buy shares. The broker will make an offer based on the instructions of the client. When the securities dealer and the broker have reached an agreement, the broker may complete the transaction.
If the client only requires a share broking service such as advisory dealing service, then, the broker's role is confined in providing advices that would help the client make a well-thought investment decision.
The discretionary dealing service allows the broker to buy or sell shares or stocks on the client's behalf. This type of share broking gives the broker control over the investments of the client.
Why do you need share broking services?
Share broking services are available to help you in your shares and stocks trading ventures. Besides, only a licenced broker can facilitate the buying and selling of shares and stocks on the stock exchange.