Lehigh Valley Stock Brokers,
Bond Brokers, Mutual Funds
Robinson & Robinson Inc.
Personalized Investment Service
Stocks Bonds Mutual Funds 401K IRA Rollovers
Tax Deferred Annuities
Member NASD & SIPC
Stocks and Bonds
A stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers on behalf of investors. Stockbrokers trade company stock and derivatives in a public market at agreed prices between a buyer and seller of these securities. The stock market is an important source for companies to raise money and additional capital for their business needs.
Financial institutions with their innovation have brought many new financial instruments to the market whose values depend on the prices of stocks. Some examples are exchange-traded funds (ETFs), stock indexes and stock options, equity swaps, single-stock futures, and stock index futures just to name a few.
Short selling is the process where the trader borrows stock from his brokerage firm and then sells it on the market, hoping for the price to fall. The trader eventually buys back the stock and makes money if the price fell in the meantime. The trader will lose money if the stock rose in price because he will have to buy it back at a higher stock price.
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