what is stock broker in stock market?

what is stock broker

A stock broker (STOCK BROKER) a person, a company or an institution (such as SHAREKHAN, ICICI DIRECT, KOTAK SECURITIES, FRR SHARES , LKP SECURITIES, etc.) is that for investors Securities (eg  SHARES , MUTUAL FUNDS , BONDS ,  DEBENTURES  etc.) as a Mediator for Buying and Selling.

You cannot buy shares directly from stock exchange, this work is done by the stock broker. Stock Broker plays the role of an agent.

Stock Broker takes a commission from you as a fee, which is also called Brokerage. We can say that Stock Broker is the link between the customer and the stock exchange .

How does an investor buy shares?

First, the investor  opens his DEMAT  and  TRADING ACCOUNT with the stock broker through which the broker trades the shares for him. The broker delivers the order placed by the investor to STOCK EXHCHANGE and completes the stock exchange order.

Now a days this facility has become very easy. The broker easily accesses the customer's order through the internet and trading terminal to the exchange. And the exchange completes the customer's order by matching other counter orders at the blink of an eye. An investor can place his order to buy a broker in two ways.

1. Through telephone
2. Through ONLINE TRADING facility provided by Share Broker on its portal.

Through Telephone: 

In this method, investors place orders for share buying and selling through Telephone to their Stock Broker. The investor tells the broker the quantity of the stock and at what price to buy or sell the stock to his broker on the telephone and the broker places his order in the stock exchange . And as soon as the order is complete, the broker gives confirmation  of the transaction to the customer.

Through the online trading facility provided on the portal: 

In this method, Broker provides online trading facility to its customers on its portal. Customers can buy and sell their own shares through this portal.   

Are Stock Broker  governed by any rules and regulations ?

Stock Broker has to follow different instructions of SEBI . The stock broker is required to be a member of the stock exchange as well as be registered with SEBI. The registration certificate is issued by SEBI to the broker, in which the SEBI registration number and other relevant details are mentioned.

How to check whether a broker is registered or not ?

Broker registration on official documents on the Website ( Registration ) is described | You can check the registration details on SEBI website. There will be confirmation from the SEBI website whether the registration of broker is there or not. In this way, you can get the details of all Registered Brokers (BROKERS) on SEBI's WEBSITE .

The names of some stock broking firms in India are as follows:

• Sharekhan
• Angel Broking
• Motilal Oswal
• ICICI Direct 
• Indiabulls
• Geojit Securities
• India Infoline
• HDFC Securities 
• FRR shares
• Lkp securities etc