ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Do you need a broker? The short answer is no-you don’t need a living, advice-giving, fee-charging broker (although you shouldn’t rule them out). You do, however, need a brokerage-the online storefront where you purchase stocks, bonds, exchange-traded funds (ETFs), and other investments.

Detailed explanation-2: -A discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full-service broker. However, a discount broker does not provide investment advice or perform analysis on a client’s behalf, unlike a full-service broker.

Detailed explanation-3: -A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

Detailed explanation-4: -A typical broker accepts and carries out orders to buy and sell investments. It also may make recommendations to buy, sell or hold a specific investment, and/or make recommendations of investment strategies (including account recommendations), and may agree to periodically monitor investments in some accounts.