discussed in the Introduction who acts as an agent
to assist people in the buying and selling of shares,
mutual funds, etc. He also provides advice to the
customer if required.
Shares are officially known as stocks and thus the
term stock market has come up. A share can be defined
as one portion of an equal number of portions in the
total capital of a company or an organization.
A debenture can be said to be a long-term debt tool
which is used by large organizations or governments
in an attempt to secure funds. Debentures are very
similar to bonds, only there is a difference in the
c) Mutual Funds
Mutual Funds are a form of collective investment.
They pool in money from many different investors and
invest it in bonds, stocks, government securities
etc. The value of the share in a mutual fund is calculated
by dividing the total funds available by the number
of shares which are issued or are outstanding.
These are the three basic types of investments which one can consider. Securities are also another common form of investment but they are not normally referred to brokers. Let us also have a look at famous international stock broking firms: