by 
The Curious Bag
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Americans are motivated to explore the stock market to grow wealth. Stocks represent equity ownership within businesses and are viewed as an efficient means to build savings, alongside overall contingency planning. Stockbrokers serve as the direct link between the investing public and capital markets.
Identification
Stockbrokers function within the role of financial intermediary to match buyers and sellers together. The Securities and Exchange Commission (SEC) defines brokers as persons "engaged in the business of effecting transactions in securities for the account of others."
Regulation
Both the SEC and the self-regulatory Financial Industry Regulatory Authority (FINRA) regulate stockbrokers. FINRA and the SEC schedule examinations and enforce the law that your broker is knowledgeable and operating in good faith.
Costs
Smaller investors save money in terms of transaction costs when hiring stockbrokers. Brokers charge commissions and fees, but these costs save the time and expense of getting licensed and locating other traders, yourself.
Types
Discount brokers simply execute orders and are best for sophisticated investors. Financial advisers coordinate financial plans---best for clientele who do not have time for research.
Warning
Stay informed in regards to economic trends to ensure that your stockbroker manages your portfolio effectively.
Source:
SEC: Guide to Broker - Dealer Registration
Federal Reserve Board: Regulations
More Information:
Federal Reserve Board: The Value of Financial Intermediaries
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