Stock Broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors.
Roles
A transaction on a stock exchange must be made between two members of the exchange-an ordinary person may not walk into the Bombay Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker.
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 the client's behalf.
Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in principal capacity sometimes call themselves dealers, stock traders or simply traders. There are of many other types of traders within capital markets, for example trading within the Foreign exchange market.
Scope : Stock Broking provides ample opportunities outside and inside India. Though the job profile remains the same, which is of a broker, dealer or analyst, the remunerations are higher. Becoming a Stock Broker in NASDAQ obviously implies far greater monetary gains. Previously no formal course was required to enter into the business of stock broking. But with growing competition the scenario has changed. The courses on stock broking prepare a person with a prior knowledge of dealing with stocks and the kinds of transactions that takes place in a stock market. This makes him more competent to enter the business. After completing the course one has to register with the Securities and Exchange Board of India (SEBI) to become a broker.
The courses on stock broking in India are -
*Post-graduate membership course in capital market and financial services
*One-year Post-Graduate Diploma in fundamentals of capital market development.
*Certificate Courses
*Chartered Financial Analyst Equity Research
The standard way to implement a VAT involves assuming a business owes some percentage on the price of the product minus all taxes previously paid on the good. If VAT rates were 10%, an orange juice maker would pay 10% of the ?5 per litre price (?0.50) minus taxes previously paid by the orange farmer (maybe ?0.20). In this example, the orange juice maker would have a ?0.30 tax liability. Each business has a strong incentive for its suppliers to pay their taxes, allowing VAT rates to be higher with less tax evasion than a retail sales tax. Behind this simple principle are the variations in its implementations, as discussed in the next section.