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Role of a broker in security transactions

How are brokers compensated? What is the role of a broker in security transactions?

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Brokers handle orders to buy or sell securities. They can be called as agents working for investors. In simple words, the investors call with an order, and then brokers work on their behalf to find someone to take the other side of the proposed trade. Brokers find sellers when an investor wants to buy,. And if investors want to sell, then these agents (brokers) find buyers. Brokers are remunerated for their services when the person whom they represent, the investor, pays them a commission on the sale or purchase of securities.

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