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An Interview With a Share Broker


The securities market has essentially divided into three categories of participants, namely the issuer of securities, investors in securities and the intermediaries. The security market has two interdependent and inseparable segments the Primary Market and the Secondary Market.

Primary Market: The primary market is the part of the capital market that deals with issuing of new securities. Companies, government or public sector institutions can obtain funds through the sale of a new stock or bond issues through the primary market.

Secondary Market: A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchange – such as the New York Stock Exchange and the NASDAQ are secondary markets.

A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients through a stock exchange or over the counter in return for a fee or commission. Stockbrokers are known by numerous professional designations, depending on the license they hold, the type of securities they sell, or the services they provide.


The project aims to Interview a share broker and ask for his experience and knowledge about the share market

Objectives of the study are

  1. To learn about share market
  2. To learn about the broker
  3. To learn about the brokerage firm
  4. To learn about the difficulties accessed by the share broker
  5. To learn about the experience of the share broker


In this project, we are going to learn about different types of winding up of a partnership firm

Primary data is data gathered for the first time by the researcher. It is the raw form of data and thoroughly studied and hence a helpful tool for secondary data. Here the method used for the collection of primary data is by using the reference of the website.

The referred websites in this project are used as a source of data for this project. Most of the content is collected from these websites. The authenticity of this information cannot be taken seriously and thus keeping that in mind most of that data might be true or fake.


We are going to ask some question to the share broker

1. Are you comfortable generating leads? Tell me about your experience doing so.

“I am very comfortable with generating leads. Prospecting and cold calling are both tasks that I am good at. I will network and ask for referrals from my current sources. From there, I will utilize networking sites such as LinkedIn. In total, I have 12 years’ experience in a business development role.”

2. What Are The Types Of Risks?

Generally, there are two types of risk: Systematic risk and Unsystematic risk.

Systematic risks are:

  • Market risk
  • Purchasing power risk
  • Interest rate risk

Unsystematic risks are:

  • Business risk
  • Financial risk
  • Liquidity risk
  • Default risk

3. Have you worked in sales before?

“I have worked in sales for most of my career. I began in high school, selling magazine subscriptions door to door in residential neighborhoods. After graduating from high school, I worked part-time as a bank teller while attending university. This role required strong up-selling skills. Since completing university, I have worked my way up in the banking world, always within sales focused role.”

4. How do you conduct research on companies and markets?

“In order to stay on top of my market research, I take an hour every morning before the workday begins. I scour my Google Alerts for any new keyword updates. I also follow a variety of RSS feeds and newsletters including BDC Market Research, MarketSmith, and MarketWatch. In addition to this, I also subscribe to all newsletters from the top Economists from a variety of financial institutions.”

5. Explain what is secondary markets? What is the difference between the secondary and primary market?

A secondary market is where the trading of securities is done. It consists of both equities as well as debt markets.

The main difference is that in the primary market an investor can buy securities directly from the company through the company’s IPO while in the secondary one buy’s securities from other investors willing to sell the same. Equity shares, bonds, preference shares, etc. are available in the secondary market.

Check out our another project on Interview of an Underwriter 

6. When purchasing a stock what charges are payable?

The charges that are payable while purchasing a stock are

  • Stock Brokers
  • Commission
  • Stamp duty
  • Cost of the stock

7. Explain can you judge whether the stock is expensive by looking at its price?

Looking just at its price you cannot judge the stock price, a $200 stock can be cheap if the company’s earnings prospects are high enough, while a $10 stock can be expensive if earning potential is low. The P/E ratio is the correct judge of the valuation of the stock.

8. What Is Mutual Fund? State Types Of Mutual Funds Schemes.

Mutual Fund is an association which pools the savings of the investors who share common financial goals. The money collected by the number of investors is invested in different types of financial instruments for the mutual benefit of its members. The income earned on these investments is then shared by the unit holders in proportion to the number of units held by them. A mutual fund has the sponsor, trustees, Asset Management Company and custodian. Mutual funds schemes are classified on the following basis:

Maturity Period – Open-ended and closed-ended schemes.

Investment Objective – Growth scheme, Income scheme, and balanced scheme.

Other schemes – Liquid fund, Gilt fund Index fund, Sector fund, and Tex saving fund.

9. What Are The Basic Principles Of Dow’s Theory?

Dow’s Theory is the oldest and the most known theories of technical analysis. It was proposed by Charles H. Dow. Dow’s theory has put forward six basic principles:

The averages discount everything.

The market has three main movements. These are primary, secondary and minor movements.

Lines indicate movements. Such a movement indicates either accumulation or distribution.

Price-volume relationships provide background.

The price action determines the trend in the market.

The averages must confirm i.e. the movements of two different market indices must confirm each other to confirm the overall trend.


There are many benefits in using a stockbroker. Individuals, investors, traders, and businesses can all use help, guidance, and advice when it comes to managing their money. Stockbrokers are regulated professionals often referred to as Registered Representatives.


A stockbroker can offer advice on how to invest, grow, manage and maintain your money. Stockbrokers are trained in this and have access to some of the best professional advice from some of the most educated and seasoned minds in the financial business.


A stockbroker can and will execute trades for a client/customer. A stockbroker can submit stock, bond, mutual fund, commodity, option, CDs and Treasury Bond buys and sells. A stockbroker can also complete a customer tender offers, reorganization items, odd lot offers and more.

Record Keeping

One of the biggest benefits of using a stockbroker is record keeping. A stockbroker and his firm will keep records of trade confirmations, monthly statements, year-end tax reporting statements, deposits, withdrawals and any activity that has occurred in an account for at least seven years.


Those new, inexperienced, or even experienced can learn a great deal from a seasoned and professional stockbroker. A stockbroker can provide insight and help a client learn about the advantages, disadvantages, risks, and rewards of many different investment vehicles.


If a client has a conflict or complaint with their stockbroker, he can take it up with the firm at which the stockbroker is employed. No complaint will go unanswered and a quick and satisfactory result is the outcome all parties wish for.

Rules and Regulations

Rules and regulations govern stockbrokers and all must adhere to these standards. Their job is to help you keep and grow your money while acting ethically. Their good business sense is rewarded in many ways when clients are happy and serviced.


The objective of this study is to develop a theoretical model to explain and predict the stock traders’ behavioral intentions to use online trading by using the concepts of perceived benefit, perceived risk, and trust. This study reveals that perceived risk is a more important influential factor than perceived benefit in online trading decision making. However, building a risk-free online stock trading environment is much more difficult than providing benefits to customers. Online trading companies need to search for risk-reducing strategies that might assist in inspiring high confidence in customers. This study suggests that online trading companies should consider focusing more on the prevention of intrusion, fraud, and identity theft.

A stockbroker has immense knowledge of the market. He knows when to invest and withdraw. He will help you in every step of trading.


A stockbroker is not your asset manager. He is just an agent who facilitates you to take part in the process of buying and selling stocks. He is not under any obligation to see that you make profits. He earns money both ways, when you buy or when you sell.

If you want to invest in stocks directly you have to learn the mechanics and the risks of the process. Frequent buying and selling are called trading. Traders bet on small changes in stock prices and earn returns or losses based on the volume they trade. This is great for brokers. However, this is called speculation for investors. Diligent Investors do not buy or sell frequently. They choose a stock that is likely to gain in value in distant future based on its past performance, future implications of the impact of trade and economy in the country on the sector in which the stock belongs. Normally one sets a target of say 7% returns in say 12 months. Which means a stock bought at a price of Rs 100 will have a value of Rs 107 ( the target price ) in 12 months. If the stock reaches 107 in 9 months, you should sell it or reassess its target price. You can also mentally set a price at which you would like to sell the stock if the stock devalues. eg if you can take a risk of 5% you set a stop loss at 95. This will limit your losses to 5% if it happens. The 5% range will let you hold on to the stock during volatile periods in the market when prices move more on momentum than valuations.


When you speak about hiring a stockbroker for Investing I understand that you need an expert to manage your money, for that, I would suggest you go for Mutual Funds as its an investment programme funded by shareholders that trades in diversified holdings and is professionally managed. With MF depending on the risk you ready to take 7 common types of mutual funds you could choose from, risk and returns always up to you to decide.

If you want to learn and Invest, the Best way is to read and gain knowledge, in the beginning, Zerodha has an initiative called Varsity teaches you all about Markets, Trading, and Investing from the basics to the advanced level, Advantage being open source also has experts you could contact if you need help. Download PDF of the course take them offline.


My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work.

I duly acknowledge the encouragement and support of the research scholars in the department, and all my colleagues and friends.

I thank my friends in the stock market and the management of broking firms who helped me with valuable data in time.

It gives me immense pleasure to take the opportunity to all the people who are directly or indirectly involved in the completion of my project based on An Interview with A Share Broker

With deep reverence, I offer my deepest gratitude _____, without whom this project could not have been fulfilled.

Lastly, I thank Almighty, my parents, family members, friends and teachers for their constant encouragement and support without which this project would not be possible.


Name of School/College


  1. https://www.mockquestions.com/position/Sales+Engineers/Are-you-comfortable-generating-leads%3F-Tell-me-abou-PTQ23195592.html
  2. https://www.wisdomjobs.com/e-university/stock-market-interview-questions.html
  3. https://www.mockquestions.com/position/Stock+Broker/
  4. https://www.quora.com/Is-it-better-to-hire-a-stock-broker-or-learn-how-to-invest-on-your-own

About Nawaf

Nawaf, An Twentieth-something savvy Web Designer / Social Media Manager / SEO Strategist based In India. He is Passionate about Web Designing, Programming, And Web Security. He is currently learning Management Studies and is in the Second Year

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One comment

  1. thank u so much for this blog and projects.perfectly made not too long and not too short.. this have helped me so much complete my project. grateful for this.

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