A stockbroker is a securities sales agent who invests in stocks on behalf of an individual or corporation. Brokers must be a member of the stock exchange to buy or sell stocks, and are licensed to conduct these transactions.

Advisement

Brokers advise their clients on investments. They explain the stock exchange process and gather financial information about the client to determine how they can best invest their money.

Buying Securities

When a client wants to buy securities, the broker sends his order to the floor of the securities exchange. After the transaction is complete, the broker notifies the client of the price. The buyer then pays for the security and the broker transfers the title to the client's name. The broker also takes care of any settlement or clearing procedures.

Establishing Clientele

Brokers rely heavily on phone solicitation to build a client base. They will often teach public financial advisement classes to meet clients. They can also gain customers through referrals.

Qualifications

A college degree is not required to be a stockbroker, but most have them. Brokers must be licensed through the General Securities Registered Representative Examination, which they can take after being employed by a brokerage firm for four months.

Experience

Most firms require some kind of work experience before hiring a broker. Typically, brokers have a background in sales and finance.

Source:

U.S. Bureau of Labor Statistics: Securities, Commodities, and Financial Services Sales Agents

The Princeton Review: Stockbroker