InvestorQ : Who is a broker and what is the role of a broker in the capital markets?
Tisha Malhotra made post

Who is a broker and what is the role of a broker in the capital markets?

Answer
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Moii Chavate answered.
1 year ago


A Broker is a member of a Stock Exchange who acts as an agent for clients and buys and sells shares on their behalf in the market. Though strictly a stock broker is an agent, yet for the performance of his part of the contract both in the market and with the client, he is deemed as a principal, a peculiar position of dual responsibility.

Brokerage is the commission payable to the stockbroker for arranging sale or purchase of securities. Scale of brokerage is officially fixed by the Stock Exchange. Brokerage scales fixed in India are the maximum chargeable commission.

Broker dealer us any person, other than a bank engaged in the business of buying or selling securities on its own behalf or for others.