Stock Brokers or Salesmen?

All these things have transformed the market place in a tremendous way. It definitely shows a lot of improvement, nonetheless improvement at the expense of marketability. The liquidity of the average stock has gone down instead of gone up. Even though there is breathtaking economic growth and what seems to be a never ending procession of stock splits, the amount of trading on the New York Stock Exchange has gone down. It the case of the exchanges that were smaller it has almost completely disappeared. The way it was done in the past where things were gambled on, the buyers that were interested in getting in and right out etc that were attempting to predict the pool manipulator were all things that were not leading to a wholesome economy. What they were able to do nonetheless was bring about a new market.

Even though we do not want to get too caught up on semantics, it needs to be seen that this has ended up in the gradual decline of the stock broker and has brought about what we call stock salespeople. As far as the stocks are concerned, the broker has a job in the auction market. This person is additionally supposed to take an order from a person that has already made a decision on the course of his investment. He then puts this order together with an order he or another broker has obtained in order to sell. This process does not take a long time that is, if the orders that were received for a big number of shares instead of a smaller number, the broker is then able to operate with only a small commission for every share that is handled and still finish the year with a good amount of profit.

If you were to compare him with the sales man, that needs to go through the much more time consuming route of convincing the customer on the course of action to that needs to be taken. Since we do not have an endless amount of time, to make a profit correspond with that of a broker, he is required to charge more of a commission for the services he renders. This is especially so if the salesman is serving a big amount of small customer instead of a few bigger ones. These days the smaller customers are the ones that salesmen serve the most due to the economic situation.