What Is Stock Broking
A stock broker is nothing but a registered and qualified working professional who buys stocks and derivatives for other people. The stock broker thus performs all the transactions for people on the stock exchange. The stock broker maintains information of the people for whom he is buying or selling stocks. This information includes name, address, PAN no and other relevant information. No transaction can take place in the stock market with out a stock broker.
The stock broker can not give inputs or advice to people buying or selling stocks unless he is registered with the Securities and exchange board of India as a portfolio manager. The stock broker takes a certain brokerage for the transactions he does for his clients on the stock exchange. The brokers are expected to issue contract notes to the clients after a particular transaction has been done. They are also expected to issue periodic reports to their clients with respect to the transactions that have been done by them in that periodic interval. If you are looking to become a portfolio manager then there is a different policy and procedure that you need to follow for it.
Stock brokers can be individual stock brokers or form a company or an organisation there by making a brokerage. All brokerages have to pay a certain sales tax for the transactions that are done with the brokerage by other clients wither through selling or buying a certain stock. Thus any person who wants to buy or sell any stock with a particular stock exchange has to do that with a particular stock broker affiliated with that stock exchange.
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