1 What service does a stockbroker offer Briefly describe the

1. What service does a stockbroker offer? Briefly describe the difference between a full service broker and a discount broker. How does a broker handle a market order? How does a broker handle a limit order?

2. Describe five different investment strategies. Which of these investment strategies do you personally favor? Why? What types of investments fit best with your strategy?

3. In addition to reporting a stock’s closing price, most financial websites provide additional information about the stock, including its market capitalization, price-earnings ratio, earnings per share and dividend and yield. Define each of these measures and provide a brief explanation of its significance.

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The main role of a stockbroker is to act as a sales agent who carries out the buying and selling activities of securities.?

Full-service brokers work for large brokerage houses like Citigroup, Merrill Lynch, Smith Barney, and Morgan Stanley. All brokers will execute trades for their clients, but a full-service broker will also research various investments and give advice. Discount brokers oftenmake more sense for the average investor because they\'re more affordable, and if you want tomake your own decisions, a discount broker may be the way to go.

An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price. A market order is the default option and is likely to be executed because it does not contain restrictions on the buy/sell price or the timeframe in which the order can be executed.?

An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Because the limit order is not a market order, it may not be executed if the price set bythe investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.

Investing for income:when investors focus on buying bonds and preferred stocks in order togenerate a steady, predictable flow of income. ?

Market Timing:investors who rely on this, use a variety of analytical techniques to try andpredict when prices of specific stocks are likely to rise and fall. Market timers try to makequick gains by buying low and selling high over a relatively short time horizon.?

Value Investing:Investors who favor value investing try to find stocks that are undervaluedin the market. They believe that the market price will rise over time to reflect its true value,thus generating capital gain.?

Investing for Growth:Investors who focus on growth look for companies that have thepotential to grow much faster than average for a sustained period of time, which they believewill lead to a steady rise in a stocks price. Investors often invest in stocks of relatively newcompanies with innovative products in a hot sector of the economy.?

Buying and Holding:this strategy involves purchasing a diversified set of securities andholding them for a long period of time. Investors put their faith in the ability of the overallmarket to continue the long-run upward trend it has exhibited throughout its history.?

I personally favor the Buying and Holding approach. I am the type of person who is patientand would sit back and get a solid return financially over the long haul. Investments in atechnological field would be ideal for this approach.
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