The definition of the stock market corresponds to that of a type of capital market where equity and fixed income are traded, through the sale of negotiable securities. The issuance, placement and distribution process depends on the participants that are the issuers, investors, intermediaries and other economic agents.
Negotiable securities issued by individuals or entities, whether public or private, are also affected in the process. They are for example negotiable securities: shares of companies and negotiable securities equivalent to shares, participative shares of savings banks, securitization bonds, mortgage participations, monetary marketing instruments, preferred shares, warrants, among others.
Brokerage is a kind of commercial contract by means of which a person called a broker. He must have knowledge in the market and is an intermediary to put two or more people in contact, with the objective of holding a commercial business. His fundamental role is to be a simple intermediary to facilitate the rapprochement of the parties. The trader needs to find the top discount broker if he wants to deal in bulk.
What should be the amount of remuneration that must be paid to the broker and who is responsible for it?
Regarding the payment that the broker must receive for his work, the commercial code establishes that he must pay what has been established for him to act as an intermediary, and in the absence of stipulation, what is usually paid for this work or what set the experts. Unless otherwise established, the broker’s payment corresponds to the parties in equal proportion.
The remuneration will take place as long as the business is held between the parties, for which the broker served as intermediary; on the other hand, even if the commercial business between the parties is not concluded, the broker is entitled to reimburse the expenses incurred as a result of his work entrusted, unless otherwise stipulated.
The reimbursement of the mentioned expenses corresponds to the parties, as established by the commercial code for the payment of the remuneration, in equal parts.
Benefits of investing in the stock market
The advantages of investing in the stock market are the following:
- With luck, intelligence, dedication and analysis, you can generate returns, which fixed income instruments or the same daily work and saving, would not generate.
- The stock exchanges are easy to access since the systems are automatic, and you can work from anywhere, it is no longer necessary to even approach the offices of the stockbroker, it can be done even from the cell phone.
- The stock exchanges are regulated by auditing entities, therefore, the likelihood of frauds and unfavourable scenarios will always be inherent, but it is less certain that this happens.
- The benefit is mutual, on the one hand, the investor maximizes his profits with the savings he dedicates to investing, and on the other hand, he wins the company in which he invests, given that he is being financed.
- In the stock market, by presenting endless possibilities of companies from different industries, then the investor can diversify into investment portfolios that facilitate stock markets, mitigating significant loss risks.