Can somebody tell me what the point is to a stockbroker?

Sure they make money for you during a bull market, but than they lose it all and more when the bear comes a calling
So what is the point to their existence?

they are parasites
but not too worry
there will be a lot fewer of them in existence in coming years
they will finally have to find a way
to go out and make an honest living
for a change

To sell you stock, and make you broker...

Hey I have no idea but if you want to bypass them you could invest in Direct Stock Purchase Plans

They exist to suck off investors.

Consider what Warren Buffett had to say:

"And that's where we are today: A record portion of the earnings that would go in their entirety to owners -- if they all just stayed in their rocking chairs -- is now going to a swelling army of Helpers. Particularly expensive is the recent pandemic of profit arrangements under which Helpers receive large portions of the winnings when they are smart or lucky, and leave family members with all the losses -- and large fixed fees to boot -- when the Helpers are dumb or unlucky (or occasionally crooked).

A sufficient number of arrangements like this -- heads, the Helper takes much of the winnings; tails, the Gotrocks lose and pay dearly for the privilege of doing so -- may make it more accurate to call the family the Hadrocks. Today, in fact, the family's frictional costs of all sorts may well amount to 20 percent of the earnings of American business. In other words, the burden of paying Helpers may cause American equity investors, overall, to earn only 80 percent or so of what they would earn if they just sat still and listened to no one."

It's a huge scam:

http://www.saveyournestegg.com/scam.html

PS:
"This is the first study ever to scientifically quantify the benefits that investors may enjoy if they work with financial advisors. The authors asked these essential questions:

1. Do advisors give clients access to funds that are harder to find and evaluate? The answer is yes, but as you will see, as a whole, advisor-selected funds underperform funds
that investors select on their own.

2. Do advisors help clients find funds that are lower cost (excluding distribution costs)? After analyzing several trillion dollars worth of transactions, the answer is no.

3. Do advisors give clients access to funds with better performance? The answer is a resounding no. I know this is shocking--and it may not apply to you. But the scientific
evidence shows that many of the other advisors in America not only underperform indexes--they underperform what most people do on their own if they don't have an advisor.

4. Do advisors provide superior asset allocation? After years of research covering trillions of dollars of asset allocations, the finding is that advisors do not provide superior asset
allocation. Even without this study, one only had to look at how advisors overemphasized technology funds in the late 1990s and how many advisors are overemphasizing energy,
gold, and foreign funds today.

5. Do advisors help correct bad investor behavior such as chasing fads and chasing performance? The sobering answer is no. In fact, the evidence shows that advisors even
contribute to such behavior. Again, look at all the money advisors are pouring into energy, gold, and foreign funds."

A good stockbroker can be invaluable in money management. You can pick your own stocks, but never do as well as a good broker. Why do you think most of us do OK? We have more time and experience trading. The ones who lost their jobs are the ones you shouldn't have dealt with. And real estate agents are bigger parasites then stockbrokers.

You are aware you can buy investments that do not loose money mutual funds you do not ever have to risk $1 on risky stocks. Ask the stock broker for safe investments.

they can save you by diversifying your portfolio balancing high risk against secure bonds they can read the market much better than you could since that where they live they know the indicaters when its all greek to you they can warn you ahead of time when something is going sour they are worth there weight in gold if there any good unless you rather day trade then you have total control over your plus and minuses

You have to be a stockbroker to buy and sell stocks on the stock market. They make money just by making transactions for people - whether or not you're making or losing money.

Bad brokers call you up with stock recommendations.

Good brokers force you to look at the big picture first, and help with asset allocation. They force you to rebalance your portfolio regularly. They keep you from doing anything stupid. And a really good one has a new joke every time you call him.

The point and purpose of a stockbroker is to help you make the right decision in buying stocks and bonds or any financial investments.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.014
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy