MANTUANO, Donita Marie B.

BSBA-FM2A

One of the nine major financial institutions is the Brokerage Firm.

A brokerage firm, or simply brokerage, is a financial institution that
facilitates the buying and selling of financial securities between a
buyer and a seller. Brokerage firms serve a clientele of investors who
trade public stocks and other securities, usually through the firm's
agent stockbrokers. A traditional, or "An investment brokerage firm is a
commercial enterprise, which functions like an helps its clients in
multiple aspects. An investment brokerage firm acts as an intermediary
between the buyer and the seller. It functions through a number of
investment brokers. An investment broker matches the purchasers of
investment plans with the sellers. For carrying out this function, they
charge a fee from the client. The fee is known as commission and it is
represented as a percentage.

In the actual sense, individuals act as brokers whether in the real

estate or investment industry. They connect a buyer and seller of
securities or help clients purchase or sell securities in exchange for a
fee. Individual brokers can work for brokerage companies or function
as independent agents in an investment or real estate transaction. The
essence of brokers or brokerage firms lie in the fact that market
investors or real estate buyers do not have sufficient information
required to make the best decisions. Hence, the need to consult
brokers who have accurate information about the market.

 A brokerage firm performs the role of a middleman in a

transaction by connecting buyers and sellers.
 A brokerage firm can also represent a client in a trade or buy and
sell securities on behalf of clients.
 Brokerage companies offer their services in exchange for a
transaction fee or commission.
 Brokers who have accurate information about the market can
work for brokerage firms or act as independent agents.