A qualified and regulated professional who buys and sells shares and other securities through market makers on behalf of investors. There are three types of stockbroking service. Execution-only, which means that the broker will only carry out the client's instructions to buy or sell. Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor. Discretionary dealing, where the stockbroker ascertains the client's investment objectives and then makes all dealing decisions on their behalf. In general, execution-only is the cheapest method of dealing in shares. The costs then increase the more comprehensive the service becomes.
A person who buys or sells stocks, bonds, or other investments for another individual. Most stockbrokers work on a commission or fee basis. They are licensed by one or more government agencies, which monitor and regulate their activities.
Woody Allen described a stockbroker as someone who invests your money until it has all gone. Normally it is a middleman who buys and sells shares on your behalf and earns commission on the transactions. Considered by many to be the fifth-oldest profession after prostitutes, pimps, tax collectors and accountants. See Execution-Only Stockbroker, Advisory Stockbroker, Portfolio Management and Securities & Futures Authority.