Question : Case Study 72
OPQ Corporation is a conglomerate planning to trade its shares on a stock exchange. The company's management is reviewing the roles of stockbrokers.
Question :
What type of broker offers advice to clients and executes orders on their behalf?
Option 1: Full-service broker
Option 2: Discount broker
Option 3: Floor broker
Option 4: Specialist broker
Correct Answer: Full-service broker
Solution : The correct answer is (a) Full-service broker
A full-service broker is a type of broker that offers a wide range of services to clients, including investment advice, research, financial planning, and execution of orders on behalf of their clients. They provide personalized assistance and guidance to help clients make informed investment decisions. In addition to executing trades, they often offer comprehensive financial services, portfolio management, and recommendations based on their expertise and analysis of the market. Clients typically pay higher fees or commissions for the additional services and advice provided by full-service brokers.
OPQ Corporation has engaged a broker to facilitate its share trading. What is the role of a broker in the stock market?
Option 1: Listing companies on stock exchanges
Option 2: Setting interest rates
Option 3: Matching buy and sell orders
Option 4: Issuing new sharess
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