Capterra Glossary
Broker
A broker, otherwise referred to as an investment broker, is a financial professional that buys and sells securities for clients in exchange for a commission. There are two types of investment brokers: a discount broker and a full-service broker. A discount broker facilitates securities trades on the behalf of a client for a discounted rate and does not offer their clientele investment advice. A full-service broker offers their client various services including investment advice, retirement planning, and other types of investing services. Corporations that have a surplus of income often hire brokers to help them open a business brokerage account. A brokerage account allows corporations to invest in securities as a business in an attempt to grow their finances.
What Small and Midsize Businesses Need to Know About Broker
Small and midsize corporations with a surplus of income that want to expand their capital often consult with a broker before opening a business brokerage account. A full service broker can help small corporations decide what stocks, bonds, and other securities to invest in as a business, which helps them ensure they invest their money in a way that proves beneficial to their company.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling