1. What are economic functions intermediaries perform?
2. What is the role of broker in the financial market?
3. How has that role changed since the inception of on-line vesting
Here is some information for you regarding the role of the broker:
It is generally believed that the broker serves only as a middleman in securities trading, with commissions as his return. In fact, however, for this commission, the broker has to be responsible to their clients for accuracy, starting from opening the trading account until completing clearing and settlement. Their responsibilities include:
1. Carrying out and executing securities trading efficiently, according to client's orders.
2. Delivering the securities payment to the seller and passing the scrip to the buyer (upon the client's request) on time.
3. Providing the securities depository services and ensuring that the client's securities trading account is always correct (for clients who do not wish to keep the scrip).
In the process, if any mistake occurs, the broker has to be responsible and make sure that the buyers get their securities and the sellers get their money accordingly and within the time limit. As for any mistake or loss that might happen, i.e. in case the broker gets a counterfeit scrip, suffers a delay in receiving the scrip, or doesn't receive all the scrips, cannot collect the money, or does not get all the money from securities selling, the broker has to accept the loss and complete any necessary legal transactions to protect the client's benefits.
If a mistake or loss occurs as a result of the broker's violation of laws or his failure to comply with the regulations and member's codes of conduct, the broker will be punished by the SET. Punishment may include probation, fine, trading suspension, and membership dismissal, according to how serious the mistake is.
Other Broker Services
Apart from the broker's services ...