Академический Документы
Профессиональный Документы
Культура Документы
2015
Submitted by:
Amit Gyawali
Jasmin Rajkarnikar
Kalpana Subedi
Mahesh Raj Joshi
Tikaram budha
Nepal Commerce Campus, New Baneshwor
Submitted to:
Mr. Nischal Risal
Faculty of Management
Nepal Commerce Campus
2015
2015
2015
4. Paid on Commission
Individual brokers are paid on commissions, usually as a percentage of the value of the trade.
Commissions and fees vary. Some brokerage firms call themselves "discount brokers," offering
trades at a single price. Brokers generally are governed by a "suitability role," meaning they
should recommend only investments that meet a client's financial goals and needs.
5. Size intermediation (Matching)
Another major role of stock broker in liquidity management is size intermediation in terms of
fulfilling your requirement. For example, you are going to buy 500 kitta of Mega Bank Limited,
but there were only 300 Kitta share, in this situation, the stock broker can purchase 300 kitta
from one seller & remaining 200 Kitta from another seller & ultimately you will have 500 kitta
in your hand.
6. Test and Registration
Both brokerage firms and individual brokers are regulated by the Securities and Exchange
Commission and specific markets, like the NEPSE. An individual broker must pass a test
administered by the SEBON. Once a candidate passes that test, he must complete registration
through a brokerage firm, which in some cases requires registering with a securities commission
in each city in which he does business.
7. Recruit New Clients
One of the main roles of a stock broker is to recruit new clients. Brokers use several tactics to
attain new clients. They could call prospects, introduce themselves and offer a free consultation.
Brokers contact the people they know such as family members, friends and past co-workers.
They ask their current clients to refer their friends and family to them. Brokers also hold free
seminars in their community where they offer advice on a financial topic such as planning for
Field work report writing
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retirements. The broker's hope when holding these seminars is that some attendees will become
clients.
9. Advise Clients
After a broker understands a client's financial situation and the goals they are striving for she will
make recommendations regarding the client's investment portfolio. The broker will use her
knowledge and training to advise the client about portfolio changes and new investment
opportunities. Brokers must always have the client's best interest in mind when making
recommendations. Also, they are required to only give advice that is suitable for the client's
goals, financial situation and risk tolerance.
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12. Requirements
Brokerage firm requirements for individual brokers vary, but most require some on-the-job
training before an applicant takes a test. Generally a candidate must have worked for a
brokerage firm for at least four months before taking the test. Some brokerages require up to
two years of experience to become a registered broker.